The Bank of Israel published its third-quarter 2025 update on debt in the nonfinancial private sector, reporting that total business and household debt increased by around 2.6% to NIS 2.4 trillion, extending the rise seen in prior quarters. Business sector debt rose about 2.5% (around NIS 36 billion) to roughly NIS 1.5 trillion, mainly reflecting net borrowing via bank loans. Corporate bond issuance in Israel totalled about NIS 26 billion, above the average of the previous four quarters, with around 57% issued by real estate and construction firms; the spread between Tel Bond 60 corporate yields and CPI-indexed government bonds widened slightly to about 0.91 percentage points in Q3 before narrowing to about 0.86 percentage points in October–November. Household debt increased about NIS 24 billion (2.7%) to around NIS 890 billion, driven by a 4.2% rise in nonhousing debt to about NIS 246 billion and a 2.2% increase in housing debt to about NIS 644 billion; new mortgage borrowing (seasonally adjusted) was about NIS 26 billion in Q3 and averaged about NIS 9 billion per month in October–November.
Bank of Israel 2025-12-29
Bank of Israel reports nonfinancial private sector debt rose 2.6% in Q3 2025 to NIS 2.4 trillion
The Bank of Israel's third-quarter 2025 update shows a 2.6% increase in total business and household debt to NIS 2.4 trillion, with business sector debt rising 2.5% to NIS 1.5 trillion and household debt increasing 2.7% to NIS 890 billion. Corporate bond issuance reached NIS 26 billion, primarily from real estate and construction firms, while new mortgage borrowing averaged NIS 9 billion monthly in October–November.