Japan’s Fiscal Loan Fund assets fell 886 billion yen in September to 119.253 trillion yen, Ministry of Finance data released Oct. 20 showed, with local-government loans driving the decline.
Loans to local governments dropped 1.863 trillion yen to 37.242 trillion yen, accounting for most of the 2.046 trillion yen reduction in total lending. Outstanding loans stood at 116.986 trillion yen, or 98.1% of the fund’s assets.
Loans to special corporations remained the largest lending category at 46.801 trillion yen. The fund also held 23.932 trillion yen in loans to government-related institutions and 9.011 trillion yen in loans to the general and special accounts.
Cash and deposits increased 1.16 trillion yen to 2.267 trillion yen, partly offsetting the drop in lending. Total assets were 4.202 trillion yen below their level at the end of the previous fiscal year.
On the liabilities side, deposits rose 4.219 trillion yen to 33.114 trillion yen, led by an increase in special account deposits. Government bonds fell 3.144 trillion yen to 85.305 trillion yen.
