The credit indicator C2, December 2007

Non-financial enterprise gross domestic debt was NOK 1 024 billion at end-December. The twelve-month growth was 21.6 per cent, up from 21.1 per cent to end-November. This is the highest twelve-month growth since September 2006 when it was record high (21.7 per cent). The one-month growth was very strong in December, as in the previous month. The strong growth in enterprise domestic debt may be related to the fact that the enterprises to a greater extent use domestic financing as a consequence of the rough international credit markets. The growth in enterprise money supply fell to 21.2 per cent to end-December according to the M2 statistics ; thus still higher than the growth in enterprise debt. The strong growth in non-financial enterprise gross debt and money supply is related to the continued strong growth in the Norwegian economy.

Lower growth in household debt

Household gross domestic debt totalled NOK 1 740 billion at end-December. The twelve-month growth was 11.3 per cent to end-December, down from 11.5 per cent to end-November. Thus the growth rate has fallen in each of the last five months. The average twelve-month growth in household gross domestic debt in the twelve months of 2007 was 11.9 per cent, compared to 13 per cent in 2006. The growth in household gross debt to end-December 2007 was yet again higher than the growth in household money supply (10.4 per cent).

Portfolio shifts and IFRS

70 per cent of the general public gross domestic debt of NOK 2 968 billion at end-December consists of bank loans. The twelve-month growth in bank loans fell from 14.6 per cent to end-November to 13.7 per cent to end-December. The twelve-month growth in credit from mortgage companies increased from 31.9 per cent to 38.4 per cent due to portfolio transfers from banks. The growth in credit from finance companies fell from 4.0 per cent to 3.3 per cent in the same period. The accounting standard IFRS, which was implemented in March 2007, may lead to more fluctuations in the data.