Advertisement

Cash boost for Italy's struggling companies

AFP
AFP - [email protected]
Cash boost for Italy's struggling companies
Italy's struggling businesses will receive a €15.7 billion cash injection. Photo: Vincenzo Pinto/AFP

Italy has unlocked €15.7 billion in state debt arrears to private companies as part of the first of two 20-billion-euro tranches, the finance ministry said on Monday.

Advertisement

Unblocking the funds was a key demand of the employers' federation Confindustria to help the many companies struggling through Italy's longest recession in 20 years.

Italy in March announced it would pay back the first tranche in the second half of 2013 and the other in 2014.

Although the payment will increase Italy's debt and deficit, Economy Minister Fabrizio Saccomanni said the move "is a signal of support for economic activity and the liquidity of companies."

According to the CGIA de Mestre union, the state owes private companies some €120 billion and the delays are responsible for a third of company closures in Italy.

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also