Locals, such as Mizuho Corporate Bank and Aozora Bank, are also making loans.

ECONOMIST: Bankruptcies can be a beginning, not always an end

Mizuho Corporate Bank calculated the multiplier effects of this public works spending.

FORBES: Whither Japan Stocks: Will an LDP/Komeito Win Drive Up Japanese Stocks?

Daisuke Karakama, market economist at Mizuho Corporate Bank, said he does not expect much improvement in prices over the next six to 12 months.

WSJ: Japan Industrial Production Rises 1.7%

"The biggest reason for the dollar's fall is the stock market, " said Dai Sato, senior vice president of the forex division at Mizuho Corporate Bank.

WSJ: Japanese Stocks Fall Sharply

Ten years ago, it would have been a lot easier to make such loans, when property prices and stockmarkets were higher, says Akihiro Saito of Mizuho Corporate Bank.

ECONOMIST: Bankruptcies can be a beginning, not always an end

"One of the messages that this forecast sends is that the government cannot afford to be complacent with its reform process, " Vishnu Varathan, senior economist with Mizuho Corporate Bank told the BBC.

BBC: India cuts economic growth forecast to 5%