The credit indicator C2, May 2008

Household gross domestic debt totalled NOK 1 798 billion at end-May. The twelve-month growth fell for the third consecutive month to 10.3 per cent to end-May, down from 10.9 per cent to end-April. This was the lowest twelve-month growth since the second half of 2003.

Continued high growth in non-financial enterprise debt

Non-financial enterprise gross domestic debt amounted to NOK 1 102 billion at end-May. The twelve-month growth was 21.8 per cent. This is the same twelve-month growth as in the previous month, when the growth also peaked at 21.8 per cent. Since December 2007, the non-financial enterprises have been the main contributor to the twelve-month growth in the credit indicator C2.

The one-month growth was very strong in May, as in the previous months. The strong growth in non-financial enterprise gross debt is related to the continued strong growth in the Norwegian economy. The strong growth in enterprise domestic debt may also be related to the fact that the enterprises to a greater extent use domestic financing as a consequence of the instability in international credit markets.

Growth rates affected by portfolio shifts

69 per cent of the general public gross domestic debt of NOK 3 110 billion at end-May consists of bank loans. The twelve-month growth in bank loans decreased from 11.9 per cent to end-April to 11.2 per cent to end-May, and the twelve-month growth in credit from mortgage companies decreased from 47.8 per cent to 46.7 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.