For an analysis of debt developments in 2019 overall, see “Nonfinancial
private sector debt” in Part A of Statistical Bulletin
for 2019 (translation forthcoming).
In the fourth quarter of 2019, the balance of nonfinancial
private sector
debt increased by approximately NIS 21 billion (1.4 percent) to about NIS
1.5 trillion. The balance of business sector debt increased in the
quarter by NIS 14 billion (1.5 percent) to NIS 958 billion. The balance of household
debt increased by NIS 7 billion (1.2 percent) to NIS 588 billion, with most
of the increase in housing debt.
The nonfinancial business sector’s outstanding debt
- In the fourth
quarter of 2019, the balance of business sector debt increased by approximately
NIS 14 billion (1.5 percent), to NIS 958 billion. The increase derived from significant
positive net funds raised (movements) of NIS 16 billion, made up mostly of loans
from nonresidents. This increase was partly offset by a 0.7 percent
appreciation of the shekel against the dollar, which reduced the value of the
debt denominated in and indexed to foreign currency (Figure 1).
- In the fourth
quarter, the business sector issued about NIS 16 billion in
bonds, markedly higher than the quarterly average amount raised in the
preceding 4 quarters (of about NIS 8.6 billion per quarter). Companies in the
real estate and construction industry continue to lead in financing, with about
half the issuances in the quarter by those companies. Companies in the
Investments industry, with the second largest financing in the quarter, made up
about 15 percent of total funds raised in the quarter. In January 2020, the business
sector issued bonds worth about NIS 3.6 billion, mostly in tradable bonds. (Figure
3).
- In the fourth
quarter, the spread between yields on corporate bonds that are included in
the Tel Bond 60 index, and the yield on CPI-indexed government bonds narrowed
by about 0.2 percentage points to about 0.9 percentage points, further to
narrowing in the previous three quarters. In January 2020, the spread widened
slightly, to about 1 percentage point (Figure 4).