Thus, although spending continued to rise rapidly last year, the deficit in the unified budget dropped to $ billion, nearly $ billion less than the figure for fiscal year 2004 and a much smaller figure than many had anticipated earlier in the year.
In view of this, the underlying tone of private banks’ lending remains sluggish. Issuance of corporate bonds and CPs has been steady. Money stock (M2 + CDs) grew faster in July compared with the previous month on a year-on-year basis. In this financial environment, the lending attitude of financial institutions is perceived by firms as less severe, and corporate financing conditions are easing.