The credit indicator C2, June 2008

Household gross domestic debt totalled NOK 1 809 billion at end-June. The twelve-month growth fell for the fourth consecutive month, ending at 9.8 per cent to end-June, from 10.3 per cent to end-May. The twelve-month growth is the lowest since August 2003.

High, but declining growth in non-financial enterprise debt

Non-financial enterprise gross domestic debt amounted to NOK 1 124 billion at end-June. The twelve-month growth at end-June fell to 20.9 per cent, from a peak growth of 21.8 per cent the two previous months. Since December 2007, the non-financial enterprises have been the main contributor to the twelve-month growth in the credit indicator C2.

The strong growth in non-financial enterprise gross debt is related to the continued strong growth in the Norwegian economy. The high growth in enterprise domestic debt may also be related to a larger use of domestic financing as a consequence of the instability in international credit markets.

The growth in non-financial enterprise money supply has been substantially reduced during the last months; see the money supply M2 statistics: http://www.ssb.no/english/subjects/11/01/m2_en/

Growth rates affected by portfolio shifts

69 per cent of the general public gross domestic debt of NOK 3 143 billion at end-June consists of bank loans. The twelve-month growth in bank loans decreased from 11.2 per cent to end-May to 10.5 per cent to end-June, and the twelve-month growth in credit from mortgage companies decreased from 46.7 per cent to 43.7 per cent in the same period. The growth rates are affected by shifts between bank loans and credit from mortgage companies. This is due to the new legislation on covered bonds.