Bank Of Italy sticking the pin in the positivity bubble.

  • Bad loans to to Italian companies to rise in coming months
  • Bad loans in Dec 2012 were 7.2% of all loans
  • Construction sector particularly hit
  • Lending form banks to households and non financial firms fell 2.3% in March, an 11th consecutive decline

For small firms the financial tensions are exacerbated by difficulty in accessing external sources of finance alternative to bank credit.

the bank said in it’s twice yearly financial stability report