External debt position, Q3 2007

The banks’ gross external debt rose by NOK 5.4 billion or 0.5 per cent from the end of the second to the end of the third quarter of 2007, and amounted to NOK1 006 billion. The increase for the banks is mainly due to an increase in the deposits of non-residents and other short term debt.

The gross external debt of "other sectors", which mainly comprises the debt of financial enterprises except banks (i.e. financing companies, insurance companies etc.), non-financial enterprises and households, was NOK 695 billion by the end of the third quarter of 2007. This is NOK 21 billion or 3.1 per cent higher than by the end of the second quarter this year.

Rise due to growth in short-term loans

The central government’s gross external debt showed the largest increase between the second and the third quarter of 2007, by NOK 59.8 billion or 7.2 per cent. The rise is due to a growth in short-term loans caused by the repurchase agreements of the Government Pension Fund Global. These loans need to be seen in conjunction with the asset investment of the Pension Fund and do not indicate any requirement of loan financing.

The banks had the largest share, 35 per cent, of Norway’s gross external debt by the end of the third quarter this year. The debt of the central government comprised 31 per cent. The shares of “Other sectors” and the Central bank of Norway’s were 24 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 third quarter of 2007.

Tables:

• Table 1 Norway's Gross External Debt Position by sector and financial instrument. 1st. Quarter 2003 - 3rd. Quarter 2007. Million NOK