External debt position, Q4 2006

The banks’ gross external debt grew by NOK 241 billion or 38 per cent from the end of the 4th quarter of 2005 to the same point in time in 2006. The growth for the banks is mainly caused by an increase in bonds and notes held by non-residents, as well as a rise in the deposits of non-residents. The central government’s gross external debt increased by NOK 316 billion or 61 per cent from the end of the 4th quarter of 2005 to the end of the 4th quarter of 2006. Foreign repurchase agreements of the Government Pension Fund explain most of the increase in the debt of the central government. The external debt of "other sectors" also increased during 2006.

From the end of the 3rd quarter of 2006 to the end of the 4th quarter of 2006 Norway’s gross external debt grew by NOK 51 billion or 2 per cent. It was the central government that contributed the most to this development, with an increase of NOK 73 billion. “Other sectors’” gross external debt did also increase from the 3rd to the 4th quarter of 2006, whereas the debt of the banks nearly was unaltered. "Other sectors" mainly comprise financial enterprises except banks (financing companies, insurance companies etc.), non-financial enterprises and households. The debt related to non-residents’ direct investments in Norway fell by NOK 23 billion or 14 per cent throughout this period.

The banks had the largest share, 34 per cent (NOK 871 billion), of Norway’s gross external debt by the end of the 4th quarter of 2006. The central government comprised 33 per cent (NOK 831 billion). The shares of “Other sectors” and the Central bank of Norway’s were 23 and 4 per cent, respectively. Debt related to foreign direct investments in Norway comprised 5 per cent of the total gross external debt by the end of the 4th quarter 2006.

Tables:

• Table 1 Norway's Gross External Debt Position by sector and financial instrument. 1st. Quarter 2003 - 4th. Quarter 2006. NOK million