Italy has a $127 billion debt problem it can't easily resolve

By Giulia Morpurgo

28 Nov 2022 · 4 min read

Italian businesses received billions in state-backed loans during the pandemic, and are struggling to repay it. Italy’s state is also heavily indebted. As Bloomberg reports, it’s a bad combination.

Curated by informed

While much of Europe Inc. is shrinking state-backed loans from the pandemic, Italian companies are still sitting on mountains of such borrowings, complicating government efforts to help them surmount the latest crisis: soaring energy costs.

Italian companies had a record €123.2 billion ($127 billion) of Covid-era state-backed credit lines outstanding as of June 30, up from €118 billion in the previous quarter, according to a European Banking Authority report published last month. The country has the most government-guaranteed debt yet to be repaid in the euro zone, even though it's not the region's largest economy.

The news, curated.

Subscribe in our mobile app to continue reading this Bloomberg article

Already subscribed? Sign in

Get world-class journalism from premium publishers, curated by editors and experts. All in one app.

Subscribe now and get 14 days free.