UPDATE 1-Growth in Italian bank loans to firms at lowest in 1-1/2 years

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MILAN, Oct 11 (Businesshala) – The pace of growth in Italian bank lending to businesses slowed further in August, falling to its lowest level since February 2020, following credit growth from state guarantees, data showed on Monday. Gaya.

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A monthly Bank of Italy report on the balance sheets of domestic banks shows that loans to non-financial companies grew 1.2% year-on-year in August, down from 1.8% growth in July.

This is the slowest pace of expansion since the 1.18% contraction recorded in February 2020, when the COVID-19 pandemic first emerged in Italy.

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The extraordinary measures taken by the government to boost businesses in the face of sanctions have halted the declining trend in lending. Bank credit to businesses grew 8.3% year-on-year in December, a 12-year high.

Monday’s data also showed Italian residents’ deposits with domestic banks stood at 2.76 trillion euros ($3.19 trillion) in August, down from 2.78 trillion euros in July.

Banks’ holdings in domestic government bonds rose to 424.29 billion euros from 422.72 billion last month.

Gross unpaid debt at the end of August stood at 46.99 billion euros, compared to 48.41 billion euros a month earlier. ($1 = 0.8646 Euro)

Reporting by Sarah Rossi, Editing by Valentina Zai

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