The credit indicator C2, March 2007

Household gross domestic debt amounted to NOK 1 596 billion at end-March. Twelve-month growth was 11.9 per cent, down from 12.1 per cent in the previous month. Though still high, the growth to March was the lowest since May 2005. The growth in household gross debt is still considerably higher than the growth in household money supply (7.9 per cent) according to the M2 statistics .

Increasing growth in non-financial enterprise debt continues

Non-financial enterprise gross domestic debt was NOK 886 billion at end-March and the twelve-month growth was 21.1 per cent, up from 21.0 per cent to end-February. 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 (31.9 per cent). The strong growth in enterprise gross debt and money supply is linked to the high activity growth in the Norwegian economy.

Statistics for credit sources are influenced by portfolio shifts and the new IFRS

About 70 per cent of general public gross domestic debt of NOK 2675 billion stem from bank loans. Twelve-month growth in bank loans increased from 16.8 per cent to 17.3 per cent in March. 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. In addition, the figures are influenced by the implementation of the new international financial reporting standards, IFRS, which contributes to making the statistics more uncertain than usual.