The credit indicator C2, November 2008

Household gross domestic debt totalled NOK 1 864 billion at end-November. The twelve-month growth continued to fall this month to 7.5 per cent, compared with 8.2 per cent to end-October. This was the lowest twelve-month growth since October 1999.

Declining growth in non-financial enterprise debt

Non-financial enterprise gross domestic debt amounted to NOK 1 202 billion at end-November. The twelve-month growth to end-November was 17.4 per cent, down from 19.1 per cent to the previous month.

Converted to annual growth rate, the non-financial gross debt for the period September-November increased by 13.2 per cent compared with the three previous months. One month earlier this growth rate was 12.8 per cent. The fact that the growth based on the three-month moving average is lower than the twelve-month growth indicates that the twelve-month growth will continue to fall.

Contributing factors to the high growth rates

The changed economic prospects have contributed to a dampening of the demand for new loans during the last few months. In addition, the financial crisis has led to a sharpening of the financial corporation credit practice. In the long term, this will contribute to a reduction in the debt growth rates. In the evaluation of the growth rates in relation to C2, however, it should be noted that when an investment decision has been taken and a possible loan commitment is given there will always be a certain delay before this is included in actual debt data. It is not unlikely that in a situation with tight liquidity, customers draw on their credit lines to a greater extent than before, which also contributes to high debt figures.

Growth rates affected by portfolio shifts

The general public gross domestic debt C2 amounted to NOK 3 284 billion at end-November, of which 66 per cent consists of bank loans. The twelve-month growth in bank loans decreased from 5.5 per cent to end-October to 3.1 per cent to end-November, and the twelve-month growth in credit from mortgage companies went up from 62 per cent to 64.4 per cent in the same period. The growth rates are affected by transfers of loans from banks to mortgage companies. This is due to the new legislation on covered bonds.