Decline in enterprise debt growth

The twelve-month growth in the credit indicator C2 was 4.8 percent to end-November, down from 5.1 percent to end-October. The decrease in debt growth came from non-financial enterprises

Credit indicator C2. Percentage change

Non-financial enterprises’ gross domestic debt amounted to NOK 1.172 billion at end of November. The twelve-month growth to end-November was -0.3 percent, down from 1.0 per cent to the previous month.

The growth based on the three-month moving average to the non-financial gross debt was -2.3 percent for the period September-November compared with the previous three months. The fact that the growth based on the three-month moving average is lower than the twelve-month growth could indicate that the twelve-month growth will continue to fall.

Rise in household debt growth

Household gross domestic debt totaled NOK 1 987 billion at end of November. The twelve-month growth was 7.0 percent to end of November, up from 6.7 percent to the previous month. The rise in household debt growth in the last two months has not been higher since March 2006.

Credit indicator C2. Percentage change
June 2009 July 2009 Aug. 2009 Sep. 2009 Oct. 2009 Nov. 2009
12 mth. total 6.8 6.5 5.9 5.5 5.1 4.8
3 mth. moving average tot 4.0 3.4 3.9 3.4 3.5
12 mth. households 6.4 6.5 6.4 6.4 6.7 7.0
12 mth. non-financial enterprises 5.8 4.7 3.4 2.4 1.0 -0.3

Growth rates affected by the portfolio shifts

The general public’s gross domestic debt C2 amounted to NOK 3.409 billion at end of November, of which 59 percent consisted of bank loans. The twelve-month growth in bank loans increased from -6.1 pe cent to end-October to -5.5 percent to end of November. Mortgage companies’ loans amounted to NOK 776 billion and the twelve-month growth went down from 47.7 percent to 41.1 percent in the same period. The growth rates are affected by transfers of loans from banks to mortgage companies. This is due to the new legislation on covered bonds. The growth rate for banks and mortgage companies in total was 4.0 percent to end-November, compared to 4.1 percent the previous month.

The twelve-month growth rate in bond debt continued to rise from 18.5 per cent to end-October to 20.1 percent to end-November. This was the highest twelve-month growth since October 2003. The growth rate in certificate debt on the other hand went down from 23.3 percent to end-October to 5.9 percent to end of November.

Source: Statistics Norway

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