The credit indicator C2, September 2007

Non-financial enterprise gross domestic debt was NOK 972 billion at end-September. The twelve-month growth was 20.1 per cent, down from 21.1 per cent to end-August. This means that the growth rate has then been higher than 20 per cent every month since August 2006. The growth in enterprise money supply was 23.3 per cent to end-September according to the M2 statistics ; i.e. it continues to be higher than the growth in enterprise debt. The strong growth in non-financial enterprise gross debt and money supply is related to the strong growth in the Norwegian economy.

Fall in household debt growth

Household gross domestic debt was NOK 1 693 billion at end-September. The twelve-month growth was 11.8 per cent to end-September, down from 12 per cent to end-August. The average twelve-month growth in household gross domestic debt in the first nine months of 2007 was 12.1 per cent, compared to an average growth of 13 per cent during 2006. However, the growth in household gross debt to end-September 2007 is still higher than the growth in household money supply (9.1 per cent).

Effects of portfolio shifts and IFRS

About 71 per cent of the general public gross domestic debt of NOK 2 861 billion at end-September consists of bank loans. The twelve-month growth in bank loans fell from 16.8 per cent to end-August to 16.7 per cent to end-September. The twelve-month growth in credit from mortgage companies fell from 15.2 to 13.3 per cent and the twelve-month growth in credit from finance companies fell from 10.1 per cent to 9 per cent in the same period. 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 international financial reporting standards, IFRS, which may lead to more fluctuations in the data than previously.