The credit indicator C2, March 2008

Household gross domestic debt totalled NOK 1 772 billion at end-March. The twelve-month growth was 11.0 per cent to end-March, down from 11.4 per cent to end-February. This was the lowest twelve-month growth since February 2004, when the twelve-month growth reached 10.8 per cent.

Continued strong growth in enterprise debt

Non-financial enterprise gross domestic debt amounted to NOK 1 060 billion at end-March. The twelve-month growth was 20.9 per cent, up from 20.7 per cent to end-February. The one-month growth was very strong in March, as in the previous months. There is still reason to believe that the enterprises to a greater extent use domestic financing as a result of the instability in international credit markets. The strong growth in non-financial enterprise gross debt is also related to the continued strong growth in the Norwegian economy. The growth in enterprise money supply fell to 7.1 per cent to end-March according to the M2 statistics ; thus substantially lower than the growth in enterprise debt.

Growth rates affected by portfolio shifts

70 per cent of the general public gross domestic debt of NOK 3 040 billion at end-March consists of bank loans. The twelve-month growth in bank loans decreased from 14.1 per cent to end-February to 12.9 per cent to end-March, while the twelve-month growth in credit from mortgage companies increased from 30.1 per cent to 37.3 per cent in the same period. The growth rates are affected by shifts between bank loans and credit from mortgage companies. This is due to the new legislation on covered bonds.