​To view the full press release as a Word document

To data & graphs


Business sector debt increased by about 1.2 percent to around NIS 794 billion in May. Households' housing debt increased by about NIS 3 billion (1.1 percent), to about NIS 279 billion at the end of the month.

 

 

The business sector's outstanding debt

  • The total outstanding debt of the business sector increased in May by about NIS 9 billion (1.2 percent), to about NIS 794 billion. The increase derived primarily from the effect of the depreciation of the shekel, and partly from net funds raised. Funds were raised through bond issues and nonbank loans, which were partially offset by net repayment of bank loans.

  • In June, the business sector (excluding banks and insurance companies) issued about NIS 2.3 billion of bonds, all of which were tradable bonds. This was slightly lower than the monthly average of bond issuances since the beginning of the year, which is about NIS 2.6 billion.


24-7-13-11.jpg


24-7-13-12.jpg

24-7-13-13.jpg


Households' debt
  • Households' outstanding debt in May was about NIS 394 billion. The balance of housing debt, which is included in the total debt, increased by about NIS 3 billion (1.1 percent), and was NIS 279 billion at the end of May. It is likely that part of the increase derived from new mortgages being brought forward ahead of the VAT increase at the beginning of June.
  •  New mortgages taken out in June totaled about NIS 4.2 billion, similar to the monthly average since the beginning of the year.

 


24-7-13-14.jpg

24-7-13-15.jpg


The cost of the debt
  • In the CPI-indexed track, the spread between interest rates on new bank credit granted and interest on deposits increased by 0.12 percentage points in May, due to a decline in the interest rate on deposits.
  • In May, the spread between the yield on indexed corporate bonds—measured by the Tel-Bond 60 Index—and average yields on indexed government bonds, was 1.25 percentage points, similar to the end of the previous month. Since June 2012, the spread has narrowed by about 1.9 percentage points.
  • In June, the average interest rate on new unindexed mortgages declined by about 0.15 percentage points, following the reduction in the Bank of Israel interest rate. The average interest rate on new CPI-indexed mortgages increased by about 0.16 percentage points.

 

24-7-13-6.jpg




 24-7-13-17.jpg



24-7-13-18.jpg


 

24-7-13-19.jpg

​

For links to Information and Data on the Bank of Israel website:
http://www.boi.org.il/deptdata/datastat/istrote.htm