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/en/bank-og-finansmarked/statistikker/k2/arkiv
4151
Strong fall in enterprise debt growth
statistikk
2009-07-31T10:00:00.000Z
Banking and financial markets
en
k2, The credit indicator C2, general public’s gross domestic debt, credit expansion, credit transactions, liabilities, creditFinancial indicators, Banking and financial markets
false

The credit indicator C2, June 2009

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Strong fall in enterprise debt growth

The twelve-month growth in the credit indicator C2 was 6.5 per cent to end-June, down from 7.5 per cent to end-May. The decrease in debt growth came from non-financial enterprises.

Non-financial enterprises’ gross domestic debt amounted to NOK 1 206 billion at end-June. The twelve-month growth to end-June was 5.4 per cent, down from 8.1 per cent in the previous month. This was the lowest twelve-month growth since February 2005.

Credit indicator C2. Percentage change

The growth based on the three-month moving average (see box) to the non-financial gross debt was -1.8 per cent for the period April-June compared with the previous three months. This was the lowest growth rate since September 2003. 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.

Steady growth in household debt

Household gross domestic debt totalled NOK 1 931 billion at end-June. The twelve-month growth was 6.4 per cent, equivalent to the previous month. This was the lowest twelve-month growth since August 1999.

Credit indicator C2. Percentage change
  January 2009 February 2009 March 2009 April 2009 May 2009 June 2009
12 mth. total 9.8 9.3 8.8 8.0 7.5 6.5
3 mth. moving average tot 7.5 7.7 7.0 5.9 4.3  
12 mth. households 6.8 6.6 6.7 6.6 6.4 6.4
12 mth. non-financial enterprises 14.4 12.9 11.0 9.2 8.1 5.4

Growth rates affected by the financial crisis

The general public’s gross domestic debt C2 amounted to NOK 3 376 billion at end-June, of which more than 60 per cent consisted of bank loans. The twelve-month growth in bank loans decreased from -3.4 per cent to end-May to -5.4 per cent to end-June. Mortgage companies’ loans increased and the twelve-month growth went up from 62.6 per cent to 65.8 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. The growth rate for banks and mortgage companies in total was 6.1 per cent to end-June, compared to 7.2 per cent the previous month.

The twelve-month growth rate in bond debt continued to rise from 11.5 per cent to end-May to 12.7 per cent to end-June. This was the highest twelve-month growth since June 2007. The growth rate in certificate debt went down from 23.4 per cent to end-May to 17.7 per cent to end-June.

C2 is an approximate measure of the size of the gross domestic debt of the general public (households, non-financial enterprises and municipalities) in NOK and foreign currency. Statistics Norway also compiles the credit indicator C3, which in addition to C2 (the public’s domestic gross debt) also includes the public’s external loan debt. Most of the public’s external loan debt refers to non-financial enterprises. The C3 statistics are published approximately one month later than the C2.

Growth based on the three-month moving average is defined as growth in average outstanding credit (seasonally-adjusted figures) in the latest three-month period in relation to the previous three-month period. The growth is adjusted for exchange rate valuation changes and statistical breaks as an annualised figure. The calculation is centred; in other words, the observation is set at the middle month of the latest three-month period.