The credit indicator C2, June 2007

The municipality sector contributed to the decrease in the twelve-month growth in general public gross domestic debt from May to June, while the debt growth of non-financial enterprises and households was unchanged. The twelve-month growth rate has remained stable at a high level over the last couple of months for both households and non-financial enterprises.

Continued high growth for non-financial enterprises

Non-financial enterprise gross domestic debt was NOK 945 billion at end-June. The twelve-month growth remains high, at 20.9 per cent to end-June, unchanged from end-May. However, the growth in enterprise money supply is even higher (26.1 per cent). The strong growth in non-financial enterprise gross debt and money supply is strongly related to the current high activity growth in the Norwegian economy.

Household debt growth levelling out

Household gross domestic debt was NOK 1 649 billion at end-June. The twelve-month growth was 12.1 per cent to end-June, unchanged from the previous month. In comparison, the highest recorded twelve-month growth rate for household gross domestic debt (according to the C2 statistics) was 13.4 per cent to end-December 2005 and end-March 2006, and the average growth during 2006 was 12.9 per cent. However, the growth in household gross debt is still higher than the growth in household money supply (8.5 per cent), see the M2 statistics .

Statistics for credit sources influenced by portfolio shifts and IFRS

About 70 per cent of the general public gross domestic gross debt of NOK 2 788 billion at end-June consists of bank loans. The twelve-month growth in bank loans was 16.7 per cent to end-June, down from 17.1 per cent to end-May. In the same period, the twelve-month growth in credit from mortgage companies increased from 14.3 to 18.2 per cent. Furthermore, the twelve-month growth in credit from finance companies decreased from 10.8 per cent to 8.8 per cent. The growth rates of loans from banks, mortgage companies and finance companies are influenced by shifts in loan portfolios between these institutions. Since March 2007, the data have also been affected by the implementation of the new international financial reporting standards, IFRS, which may lead to more fluctuations in the data in the time ahead.