The credit indicator C2, February 2007

Non-financial enterprise gross domestic debt was NOK 873 billion at end- February and the twelve-month growth was then 21.2 per cent, up from 21.0 per cent to end-January. The annual growth rate is still among the highest recorded for non-financial enterprises since the late 1980s. However, the growth in enterprise money supply is even higher (31.4 per cent), seeto the money supply statistics http://www.ssb.no/english/subjects/11/01/m2_en/ ). The strong growth in enterprise gross debt and money supply is linked to the high activity growth in the Norwegian economy.

Continued high growth in household debt

Household gross domestic debt amounted to NOK 1 581 billion at end-February. Twelve-month growth was 12.1 per cent, the same as to the previous month. Even still high, the growth in February was the lowest since June 2005. The growth in household gross debt is still considerably higher than the growth in household money supply (6.5 per cent).

Growth in bank loans is high but declines slightly

About 70 per cent of general public gross domestic debt of NOK 2645 billion stem from bank loans. Twelve-month growth in bank loans fell in February for the third month in a row, to 16.9 per cent. Please be aware that the growth rates of loans from banks, mortgage companies and finance companies are influenced by several shifts in portfolios among these credit sources.