The Bank of Israel published its first-quarter 2025 update on nonfinancial private sector debt, showing total outstanding debt of households and businesses increased by about 1.3 percent to approximately NIS 2.3 trillion. The annual growth rate remained positive at around 6.8 percent, slightly below the previous quarter’s 7 percent. Business sector debt rose by about 1.5 percent (around NIS 21 billion) to roughly NIS 1.4 trillion, mainly reflecting net borrowing via bank loans and tradable bonds issued in Israel. Business bond issuance totalled about NIS 16 billion, in line with the quarterly average of the prior four quarters, with around half issued by construction and real estate companies. Household debt increased to about NIS 855 billion, driven mainly by housing debt, which rose by about NIS 7 billion (1.2 percent) due to new bank mortgage volumes, while nonhousing debt grew by about 0.7 percent to NIS 237 billion.
Bank of Israel 2025-06-23
Bank of Israel reports nonfinancial private sector debt rose to NIS 2.3 trillion in Q1 2025
The Bank of Israel's first-quarter 2025 update reports a 1.3% increase in nonfinancial private sector debt, totaling approximately NIS 2.3 trillion, with business sector debt rising by 1.5% to NIS 1.4 trillion and household debt increasing to NIS 855 billion, primarily due to housing debt growth.