4301_not-searchable
/en/bank-og-finansmarked/statistikker/k3/maaned
4301
Continued high growth in external debt
statistikk
2007-08-15T10:00:00.000Z
Banking and financial markets
en
k3, The credit indicator C3, total gross debt, foreign debt, debt, credit, total debtFinancial indicators, Banking and financial markets
false

The credit indicator C3, May 2007

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Published:

This is an archived release.

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Continued high growth in external debt

The public’s external loan debt increased by 25.2 per cent in the twelve months to end-May, down from 26.1 per cent to end-April. Both offshore industries and mainland Norway experienced high growth in their external debt.

Credit indicator C3 by credit sources. Twelve-month growth. Per cent

The public’s gross external loan debt, which mainly relates to non-financial enterprises, amounted to NOK 598 billion at end-May. The public’s gross external loan debt continues to grow at a faster pace than domestic gross debt (C2), thus contributing to the high growth in the total gross debt of the public (C3). Barely 54 per cent of the external loan debt came from mainland Norway. For this part of the foreign debt the annual growth fell from 20.2 per cent to 19.4 per cent, while twelve-month growth in foreign debt of offshore industries went down from 33.7 per cent to 32.5 per cent through May. The latter growth rate being so high is related to the oil sector’s reduction of short term external loan debt in connection with the oil tax payments in April last year, while the oil companies increased this debt in April this year.

Increasing growth in total gross debt

Twelve-month growth in total gross debt (C3) increased for the fourth month in a row, and rose from 16.2 per cent to 16.5 per cent through May. This is the highest C3 growth since October 1987. Total gross debt (C3) amounted to NOK 3 343 billion at end-May, whereby NOK 3 005 billion (close to 90 per cent) came from mainland Norway.

Continued high growth in domestic gross debt

The credit indicator C2 amounted to NOK 2 745 billion at end-May. Twelve-month growth was 14.8 per cent, up from 14.2 per cent to end-April. The annual growth in the public’s domestic gross debt is still high, due to the very high growth in non-financial enterprise debt (20.9 per cent) and considerably sharp growth in household debt (12.1 per cent). See also the C2 statistics.

The credit indicator C3 by credit sources.
Twelve-month growth. Per cent
  March 2007 April 2007 May 2007
Total gross debt (C3) 15.5 16.2 16.5
Domestic gross debt (C2)1 14.6 14.2 14.8
Gross external loan debt 20.1 26.1 25.2
1  The growth rates for C2 are in the table presented as they were on the time of the C3 release.

C3 is an approximate measure of the size of the total gross debt of the public (households, non-financial enterprises and municipalities) in NOK and foreign exchange. C3 comprises the sum of C2 (the public’s domestic gross debt) and the public’s external loan debt where C2 constitutes the major part. The C3 statistics is published approximately one month later than C2.

Be aware that the growth rates for the public’s gross external loan debt vary from month to month due to shifting amounts of short-time internal dept by oil companies. In addition, the first-time-published growth rates are often revised due to better information after some time. For more details concerning the public’s gross external loan debt, see StatBank under http://www.ssb.no/english/subjects/09/04/putgjeld_en/ .