Jerusalem, 18 March, 2026 (TPS-IL) — The Bank of Israel reported that in 2025 the outstanding debt of the nonfinancial private sector increased by approximately 204 billion Shekels ($65 billion) or by 9%, a higher expansion than in the previous year, reaching about 2.5 trillion Shekels ($800 billion) by year’s end.
The nonfinancial business sector’s debt grew by 11%, (exceeding the average annual growth rate of 6% over the past decade). This increase was driven mainly by net debt issuance, concentrated in domestic bank loans and tradable bonds, explained the Bank.
The largest rise in nonfinancial business sector debt was in the real estate and construction industries, where debt reached 534 billion Shekels ($172 billion) as of September 2025, accounting for 36% of total nonfinancial business sector debt.
Household debt (housing and non-housing) increased by about 57 billion Shekels ($18 billion) or by 7% during 2025, similar to the average growth rate of 7 percent over the past decade, reaching approximately 903 billion Shekels ($291 billion). Households’ housing debt continued to represent the majority of household debt—72% of the total. The increase in housing debt stemmed primarily from new mortgage volume, although the pace of growth stabilized over the course of the year.
The total volume of new mortgages taken by households from banks in 2025 amounted to approximately 106 billion Shekels ($34 billion), higher than in most previous years.