Credit, Italian companies hit by "credit crunch"

Credit, Italian companies hit by “credit crunch”

The bank gives the loan in the previous year (May 2023 in the same month of May 2022) italian companies (non-financial corporation) decreased 5 percent (equivalent to -33.3 billion Euros) and only Cyprus out of 20 Eurozone countries recorded a worse result than us.

curb business lending

On the other hand, in capitalized names, + is dominant.7,4 percent registered by Germany and +4.5 percent from France, Only Spain suffered a contraction (-2.8 percent), which was, in any case, much more controlled than ours. .although it was in the last year Have the credit taps been turning off in Italy while most of the rest of Europe has not? This question was answered by the Research Office of CGIA Which processed the data provided by the European Central Bank, analyzing the context.

Experts point out that the manufacturing sector in Italy generates a major portion of the total demand for loans for businesses. The ECB would have weakened the demand for liquidity significantly. It should also be highlighted that many companies increased their savings during the pandemic period. Now, when deposit remuneration is among the lowest in Europe and deposit rates exceed 4 percent, many companies find it more convenient to finance themselves by withdrawing resources allocated to their current accounts. The latter is certainly a positive aspect and is confirmed by the data. Indeed, last year the bank deposits of Italian companies decreased 4.3 percent (equivalent to -21.5 billion euros).

Small Businesses in the Crosshairs

Since 2011 – explain Mestre’s artisans – the trend of bank lending to companies has been steadily decreasing; There was a slight reversal of the trend between the first months of 2020 and September 2022, thanks to the public guarantee measures taken by the governmento count 1 and count 2 Which has allowed entrepreneurs to get loans more easily. In the last year, unfortunately, the trend has changed sign. The rise in interest rates significantly contributed to reducing the flow of credit to economic activity, and small businesses bore the brunt the most. In fact, those with fewer than 20 employees faced a 7.7 percent decrease in performance debt (- 9.5 billion); However, those with at least 20 had a cut in half: -3.8 percent (-22.5 billion Euros).

Which areas are most affected?

Among the Italian provinces, the most affected in percentage termsl Credit crisis che fell on the ground Trieste. Between May 2023 and the same month of 2022, Julian Capital reported a 15 percent reduction in loans performed (i.e. net of non-performing loans) to businesses (-673.8 million euros). Aosta is in second place with -14.6 percent (290.7 million), Biella -12.7 percent (-232 million), Savona -12.2 percent (251.2 million) and Cagliari -11.6 percent (-384.3 million euros). in absolute terms, the most punishing reality was Roma With a deficit of 5.1 billion euros.





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