NEWS » Italian Businesses continue to close at an alarming rate
Italian Businesses continue to close at an alarming rate
Italian businesses continue to close at an alarming rate.
“Confesercenti” revealed that the beginning of 2013 was strongly negative in all the Italian regions. The worst was Lombardy where 854 shops, bars and restaurants closed but also the Lazio registered 635 companies cancelled.
Companies find it difficult to cope with their financial needs and for the first time since the crisis began in 2008, also companies in the North-East are affected. The lack of liquidity pushes the businesses to apply for funding from the banks but more companies have been refused credit or have received an amount lower than that demanded (from 35.4% to almost 40%) while the number of those that obtained the money requested has decreased (from 31.5% to 30%). Among the reasons of requests for financial difficulties prevailed lack of liquidity (70% of companies). Surprisingly only 20% use the money for investments.
In the fourth quarter of 2012 the percentage of firms that were able to meet their financial needs without great problems and the number of those who managed to be successful with difficulties was substantially stable.
The number of firms that have failed to meet up to their needs increased from 19.3% to 19.9%. The service sector - revealed “Confcommercio” – was the one with more financial problems, even though for the immediate future, the previsions are in line with those of trade and tourism. There is still a significant difference between the south, where firms are struggling more, and the rest of Italy.
As the newspaper online “La Repubblica” reported, other data - released by “Unioncamere” - revealed that the tightening up on credit also affected the exporting firms. A study developed together with “Tagliacarne Institute”, revealed how the credit crunch didn’t save even the companies that operate internationally. Between June 2011 and June 2012 there has been a decline in the Italian disbursement of bank credit to businesses of 2.5%. A situation that encourages micro-credit, the financial instrument of solidarity intended for a public that has difficult access to bank credit, that has recorded an unprecedented takeoff, +42% in one year.