The following is a summary of developments in nonfinancial private sector debt in the third quarter of 2024:
- In the third quarter of 2024, the balance of nonfinancial private sector debt (both business and household) increased, by approximately 3 percent to about NIS 2.2 trillion. The annual growth rate of outstanding debt increased to about 5 percent, following a downward trend that began in the second half of 2022. This rate is lower than the growth rates recorded in previous years.
- The balance of business sector debt increased by about 3 percent (about NIS 40 billion) during the quarter, to about NIS 1.4 trillion. This was mainly due to net debt raised via bank loans, which were concentrated in the large business segment, and debt raised through tradable bonds in Israel.
- Bond issuances in the business sector in Israel totaled about NIS 21 billion during the third quarter, significantly higher than the quarterly average of the previous four quarters. About half of the bond issuances were made by companies in the construction and real estate industry, which continues to lead bond issuances similar to previous years.
- The balance of household debt also continued to increase during the quarter, to about NIS 831 billion, mainly due to an increase in the balance of housing debt (about NIS 14 billion, 2 percent), which was due to a recovery in new mortgage borrowing from banks. The balance of nonhousing debt also grew (by about NIS 5 billion, 2 percent), with the increase concentrated in outstanding debt to the banks and to credit card companies.