5 Conditions in the CP market have improved markedly since the introduction of the various Federal Reserve facilities aimed at fostering market liquidity. CP spreads – shown in the left-hand panel of figure 4 – have declined sharply since these facilities went into effect. As with the bank and primary dealer-oriented facilities, when spreads narrowed, usage subsided, as shown in the right-hand panel.
•  Third, private credit to GDP ratio is abysmally low at 18.4 percent compared with other countries at the same level of development. •  Fourth, the sectoral distribution of credit is highly skewed and very low compared to the needs of the producing sectors of our economy.