NIS 4.8 billion in new mortgages were granted in August 2013, above the monthly average of NIS 4.4 billion in January-August, the Bank of Israel reported today.
Household mortgage debt rose to NIS 284 billion in July, 1.2% more than in June. 90% of the debt is owed to the banks. Since December 2010, household mortgage debt has grown by NIS 50 billion. Total household debt was NIS 401 billion in July.
Business sector debt dipped by 0.2% in July to NIS 779 billion. The decline was due to the strengthening of the shekel against the dollar, which reduced the shekel value of dollar denominated debt. The decline was partly offset by the net raising of NIS 200 million in debt and the rise in the Consumer Price Index (CPI).
In July, for the first time in 2013, there were positive net funds raised from banks by the business sector, amounting to NIS 2 billion. The gain followed the repayment of NIS 11.6 billion in debt by the business sector in the first half of the year.
In August, the business sector (excluding banks and insurance companies) issued NIS 2.5 billion of bonds, all of which were tradable bonds. The figure equals the monthly average of bond issuances since the beginning of the year.
Published by Globes [online], Israel business news - www.globes-online.com - on September 23, 2013
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