An analysis of debt developments for the year 2016 as a whole
appears in “Debt of the Nonfinancial Private Sector” in Part 1 of the
Statistical Bulletin for 2016.

 

 

Business sector debt increased in the
fourth quarter of 2016 by about NIS 6 billion (0.7 percent), to about NIS 848 billion.
Household debt increased in the fourth quarter by about NIS 3 billion (0.6
percent), to around NIS 504 billion.

 

The business sector’s outstanding debt

·      In the fourth
quarter of 2016, business sector debt increased by about NIS 6 billion (0.7
percent) to around NIS 848 billion at the end of the year. The increase derived
from a 2.3 percent depreciation of the shekel against the dollar, which increased
the value of debt denominated in and indexed to foreign exchange.  The increase was also a result of a net
quantitative increase of about NIS 1.6 billion: tradable bonds issued in Israel
and loans from institutional investors that were partly offset as a result of a
quantitative reduction in bank loans, nontradable bonds, and loans from
nonresidents.

·    In the fourth
quarter, the business sector (excluding banks and insurance companies) issued
about NIS 8.5 billion in bonds, mostly tradable, similar to the total issuances
in the same period of the previous year. In January 2017, there were about NIS
5.5 billion total issuances, higher than the average of monthly issuances in
2016 (NIS 3.7 billion).

·     The spread
between yields on CPI-indexed corporate bonds, as measured by the Tel Bond 60
index, and the yield on CPI-indexed government bonds narrowed by about 0.2
percentage points in the past two months, to about 1.24 percentage points in January
2017, following an increase of about 0.16 percentage points between August and November,
2016.

Household debt

·     Households’
outstanding debt increased by about NIS 3 billion (about 0.6 percent) in the
fourth quarter to about NIS 504 billion, lower than the quarterly increases in
previous quarters.

·      Outstanding
housing debt increased in the fourth quarter by about NIS 2 billion (0.7
percent), to about NIS 339 billion.

·      In the fourth
quarter of the year, new mortgages taken out totaled about NIS 12 billion, lower
than the same period last year (NIS 15.5 billion).  This was further to the moderate downward
trend since the second quarter of 2016. 

In 2016, new
mortgages taken out totaled about NIS 59 billion, lower than the total taken
out in 2015 (about NIS 65 billion).

In January
2017, there was a seasonal decline in new mortgages taken out compared with the
previous month, with new mortgages taken out in January totaling about NIS 4.4
billion (Figure 4).

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