Decreased growth in domestic loan debt

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The twelve-month growth in the credit indicator C2 was 5.6 per cent to the end of July 2019, down from 5.7 per cent the previous month.

Written by: Anita Einarsdottir

The general public’s domestic loan debt amounted to NOK 5 906 billion at end-July, according to new figures from the Credit indicator statistics.

Figure 1. Credit indicator (C2)

General public Households Non-financial corporations Municipalities
July 2016 5 5.9 3.3 5.1
Aug. 2016 5 6.1 3 5
Sep. 2016 5.1 6.3 2.6 6.4
Oct. 2016 5 6.1 2.7 5.9
Nov. 2016 5.2 6.5 2.7 5
Dec. 2016 4.8 6.3 1.9 5.6
Jan. 2017 5 6.5 2.2 5.8
Feb. 2017 5 6.6 1.8 6.4
Mar. 2017 5.2 6.7 2.2 6.1
Apr. 2017 5.1 6.5 2.3 5.6
May 2017 5.4 6.7 3.1 5.2
June 2017 5.6 6.6 4 5.3
July 2017 5.7 6.6 4.1 5.8
Aug. 2017 5.6 6.5 3.7 6
Sep. 2017 5.8 6.4 4.7 5.3
Okt. 2017 5.7 6.3 4.7 5.4
Nov. 2017 5.8 6.4 4.9 5.3
Dec. 2017 6.4 6.4 6.7 5.3
Jan. 2018 6.2 6.2 6.6 5.1
Feb. 2018 6.3 6.0 7.4 4.3
Mar. 2018 6.3 6.0 7.5 4.6
Apr. 2018 6.4 6.0 7.8 4.9
May 2018 6.2 5.8 7.0 5.8
June 2018 5.9 5.9 6.2 5.4
July 2018 5.8 5.8 6.2 5.0
Aug. 2018 5.9 5.8 6.5 4.8
Sep. 2018 5.5 5.8 5.0 4.8
Oct. 2018 5.8 5.8 6.0 4.7
Nov. 2018 5.7 5.6 6.2 5.3
Dec. 2018 5.6 5.6 5.5 6.6
Jan. 2019 5.8 5.7 5.8 6.4
Feb. 2019 5.8 5.7 5.7 7.3
Mar. 2019 5.9 5.7 5.8 7.6
Apr. 2019 5.8 5.7 5.7 7.0
May 2019 5.7 5.6 5.7 6.8
June 2019 5.7 5.5 5.8 6.8
July 2019 5.6 5.3 5.8 7.0

Decreased debt growth in households  

Households’ domestic loan debt totalled NOK 3 555 billion at end-July. The twelve-month growth was 5.3 per cent to end-July, down from 5.5 per cent the previous month. Some of the decline is due to changed period for converting student loans into scholarships, see explanation below.

Unchanged debt growth in non-financial corporations

Non-financial corporations domestic loan debt amounted to NOK 1 819 billion at end-July. The twelve-month growth was 5.8 per cent to end-July, unchanged from the previous month.

Increased growth in loans from banks and mortgage companies
Of the general public’s domestic loan debt, 81 per cent consisted of loans from banks and mortgage companies at end-July. This amounted to NOK 4 782 billion. The twelve-month growth in loans from banks and mortgage companies was 5.8 per cent, up from 5.7 per cent the previous month.

Decreased growth in debt securities

The twelve-month growth in the general public’s debt securities was 2.2 per cent to end-July, down from 3.5 per cent the previous month. 

External debt fell further in the 2nd quarter of 2019

The general public’s total loan debt (C3) amounted to NOK 7 161 billion at the end of the 2nd quarter of 2019. The external debt constitutes NOK 1 259 billion.

The external loan debt kept on declining to the end of the 2nd quarter. The twelve-month growth in external debt increased from -5.6 per cent to -2.1 per cent from the end of the 1st quarter to the end of the 2nd quarter of 2019.

The external loan debt mainly relates to non-financial corporations.

Changed period for converting student loans into scholarships

The period for converting student loans into scholarships has changed from November to July. This converting of loans entails a reduction in household debt. This results in a decline in household debt growth in July, compared with previous years.

Relocation of loans from bank to mortgage companies

In May 2019, domestic loan debt was transferred from banks to mortgage companies. This will therefore be shown in transaction and growth calculations for banks and mortgage companies, as these transferrals have not been adjusted for breaks in the series.

Sectoral change of toll companies

The sectoral classification of The Norwegian toll companies is changed from public incorporated enterprises, owned by local government, to central government. These companies’ loan debt is no longer included in the credit indicator. The change is submitted in September 2018 with statistical effect from January 2018.

Method for seasonal adjustment is revised from January 2019

From January 2019 the method and practice for seasonal adjustment is harmonized with guidelines from Eurostat. Seasonal adjusted data is revised from January 2018.

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