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4291
Slowdown in external loan debt growth
statistikk
2008-01-14T10:00:00.000Z
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, October 2007

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Published:

This is an archived release.

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Slowdown in external loan debt growth

Twelve-month growth in the general public gross external loan debt was 9.5 per cent to end-October, down from 15.3 per cent to end-September. Both offshore industries and mainland Norway contributed to the decline.

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

The reduced growth in external loan debt may be related to the fact that it has become increasingly difficult to borrow abroad as a consequence of the problems in the international financial markets. During the period March-September 2007 the twelve-month growth was in part considerably higher for external debt than for domestic debt (C2). At end-October this situation had reversed.

The general public gross external loan debt, which mainly relates to non-financial enterprises, amounted to NOK 585 billion at end-October. About 42 per cent of the external loan debt came from offshore industries. For this part of the foreign debt, annual growth fell from 17.4 per cent to 10.6 per cent, while twelve-month growth in the foreign debt of mainland Norway fell from 13.5 per cent to 8.7 per cent through October.

Reduced growth also in total gross debt

Twelve-month growth in total gross debt (C3) fell for the fifth consecutive month, down from 14.5 per cent to 13.2 per cent through October. Though still high, this is the lowest C3-growth recorded since July 2006. Total gross debt (C3) amounted to NOK 3 471 billion at end-October, whereby NOK 3 160 billion (91 per cent) came from mainland Norway.

Continued high growth in domestic gross debt

The credit indicator C2 amounted to NOK 2 886 billion at end-October. Twelve-month growth was 14.0 per cent, down from 14.3 per cent to end-September. The annual growth in the general public domestic gross debt is still high, due to the very high growth in non-financial enterprise debt (19.1 per cent) and considerably sharp growth in household debt (11.6 per cent). See also the C2 statistics , which shows that the growth in the general public domestic gross debt increased again in November.

The credit indicator C3 by credit sources. Twelve-month growth. Per cent
  August 2007 September 2007 October 2007
Total gross debt (C3) 15.8 14.5 13.2
Domestic gross debt (C2)1 14.8 14.3 14.0
Gross external loan debt 20.6 15.3 9.5
1  The growth rates for C2 are in the table presented as they were at
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 debt 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/ .