Martedì, 23 Ottobre 2018

Italy in very clear credit crunch


(By Kate Carlisle)
Milan, June 6 - Standard & Poor's chief economist
for Europe, Jean-Michel Six, said Thursday that "Italy is in a
very clear situation of credit crunch".
He added that 2013 will be another year of recession for
the country, with the ratings agency forecasting negative growth
of 1.5% this year.
"In 2014 we'll see the start of a very weak recovery," Six
said at a conference in Milan. "The basis for a real recovery
can come, above all, from true monetary, banking and fiscal
coordination (in the eurozone)".
Italy's credit crunch is expanding beyond medium and large
enterprise and bleeding into small businesses too, Standard &
Poor's director of corporate ratings in Italy said on Thursday.
"Until now, difficulty accessing credit effected
predominately medium and large companies, but now it has become
a problem for all," Standard & Poor's Renato Panichi said.
"Italy remains 'bankcentric' but company bonds will
increase significantly," Panichi said.
"There are a lot of opportunities for Italian companies,
but we are still a little behind other competitor countries,"
the rating agency's southern Europe director, Maria Pierdicchi,
"While it is true that our companies and production are
different, smaller and more fragmented, we have many fine
businesses that could successfully access corporate bonds,"
Pierdicchi said.
Bank loans in Italy to households and non-financial
companies dropped 3.1% in April with respect to
the same month in 2012, falling to 1.458 billion euros,
according to the monthly report by Italian banking association
ABI released on Tuesday.
Overall bank loans, including lending to financial
companies and the public sector, decreased by 2.12% to 1.907
billion in April.
Consumer spending has been muffled too in recession-hit
Italy fell 3.9% in April with respect to the same month in 2012,
retailers association Confcommercio said Thursday.
It was the 17th year-on-year drop in the last 20 months,
Confcommercio said.
The association added that consumer spending was down 0.1%
in April compared to March and that it dropped 4.4% in the first
third of this year with respect to the first four months of
It pointed out that this is alarming as the figure for the
first third of 2012 was already 3.3% down on the same period in
"The deterioration of households' employment and income
conditions is causing demand dynamics that are even more
negative in this first part of 2013 than they were in the first
few months of 2012," read a report by the association.
Confcommercio said it was particularly worried about the
fall in spending on telecommunications goods and services, which
was down 2.5% in April with respect to March and 0.1% with
respect to April 2012.
Spending in this sector had frequently bucked the negative
trend in recent months and managed to rise.

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