External debt position, Q2 2006

The gross external debt of the central government increased by NOK 75 billion or 13 per cent from the end of the 1st quarter to the end of the 2nd quarter this year. Foreign repurchase agreements of the Government Pension Fund explain most of the increase in the debt of the central government. The banks’ gross external debt showed an increase of NOK 38 billion or 5 per cent from the end of the 1st quarter to the end of the 2nd quarter 2006. The growth for the banks stems from both an increase in bonds and notes held by non-residents, as well as a rise in the deposits of non-residents. The external debt of the Central Bank of Norway’s and of "other sectors" also increased during this period."Other sectors in total" mainly comprise financial enterprises except banks (financing companies, insurance companies etc.), non-financial enterprises and households.

The banks had the largest share, 36 per cent (NOK 779 billion), of Norway’s gross external debt by the end of the 2nd quarter this year. The central government and other sectors comprised 29 and 24 per cent respectively, whereas the Central bank of Norway’s share was 5 per cent. Debt related to foreign direct investments in Norway comprised 6 per cent of the total gross external debt by the end of the 2nd quarter 2006.

Tables:

• Table 1 Norway's Gross External Debt Position by sector and financial instrument. 1st. Quarter 2003 - 2nd. Quarter 2006. Million NOK