450,000 Businesses Shut Down in Italy; Non-Performing Loans Jump 15.3%, Write-Downs 21.6%
Here are a couple of interesting economic links from Italy courtesy of reader Andrea. The translations from Italian are a bit choppy, but the gist of the articles is easily understandable.
Non-Performing Loans Jump 15.3%, Write-Downs 21.6%
From Thompson Financial News: Non-Performing Loans Jump 15.3%
Non-performing loans amounted to approximately 117.6 billion, 1.8 billion more ‘than in August and 15.6 billion in more’ than in September 2011, marking an annual increase of 15.3%.
With regard to loans net of write-downs at the end of September totaled 67.2 billion, about 1.5 billion more ‘than a month before and almost 12 billion more’ than in September 2011, with an annual increase of 21.6%.
450,000 Businesses Shut Down in Italy in Three Years
La Stampa reports 450,000 Businesses Shut Down in Italy in Three Years.
In just three years, from 2010 to 2012, about 450,000 companies closed with a loss of over 300,000 jobs, while the Italians caught up in terms of wear [usurious loans] increased to 600,000.
These are the data provided by Sos enterprise-Confesercenti usury-day. In particular, wear Italian capital Rome and Naples are confirmed.
It is “wear submerged, chameleon, now violent now` hit and run ‘which marks a difference between the demands of incredible help and legal reality.” [Bankruptcy looms]
The President of Confesercenti Marco Venturi pointed out that “the rest of the bank lending to businesses fell by 6%, rising instead both protests, particularly in the South, both failures, especially in Lombardy and the north-east. Do not forget that over the years has formed an army of 5 million people who for various reasons – bad payers, protested – is effectively excluded from the banking system and therefore must satisfy all its needs for cash.”
The fact that more businesses shut down than jobs lost in those businesses says that many of the businesses are shell corporations. However, the implied stress is very real.
For more from Andrea regarding Italian bankruptcies, please see Reader Comments on Italy’s Insane Labor Rules
Mike “Mish” Shedlock