The credit indicator C2, July 2010

The general public's gross domestic debt C2 amounted to NOK 3 534 billion at end-July, down from NOK 3 535 billon at end-June.

Increased debt growth for non-financial enterprises

Non-financial enterprises' gross domestic debt amounted to NOK 1 197 billion at end-July. The twelve-month growth was 0.6 per cent to end-July, up from 0.5 per cent to the previous month.

The growth based on the three-month moving average of the non-financial gross debt was 5.1 per cent for the period May-July compared with the previous three months. The fact that the growth based on the three-month moving average is higher than the twelve-month growth could be an indication that the twelve-month growth will rise.

The rise in non-financial enterprises' debt growth can imply that non-financial enterprises have increased their loan demands. At the same time, the improved liquidity supply for the financial corporations make the credit suppliers better equipped to handle the increased demand.

Continued decline in household debt growth

Household gross domestic debt totalled NOK 2 058 billion at end-July. The twelve-month growth was 6.1 per cent to end-July, down from 6.2 per cent to the previous month.

 

The growth in household debt has declined gradually since the peak in March 2006, and we have to go back to August 1999 to find a lower growth rate.

Growth rates are still affected by the portfolio shifts

Of the general public's gross domestic debt, 55 per cent consisted of bank loans. The twelve-month growth in bank loans increased from -6.4 per cent to end-June, to -5.9 per cent to end-July. Mortgage companies' loans amounted to NOK 965 billion and the twelve-month growth went down from 38.6 per cent to 35.9 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 4.8 per cent to end-July, unchanged from the previous month.

The growth rate in bond debt has been decreasing since the beginning of this year and continued to fall in July. The twelve-month growth rate was 2.9 per cent to end-July, down from 4.4 per cent to the previous month. The growth rate in certificate debt also went down, from -8.1 per cent to end-June to -8.3 per cent to end-July.