Defaults in Italian leasing have reached their highest level
since 2001, according to Moody’s.
The rating agency’s Q3 report on the sector said that rising
delinquencies and defaults among Italy’s SME-sized businesses meant
that the net default index increased to 2.13 percent in the third
quarter of 2009, which is the highest level since measuring
began.
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The recession has hit hard Italian SMEs and many firms have
found themselves without liquidity, and as a consequence the number
of insolvencies has soared.
A scheme introduced earlier this year by Italy’s government
authorities and banks and their leasing subsidiaries to give SMEs a
moratorium on leasing, however, is expected to
provide struggling companies with some relief.
Despite that, the market deterioration means that for the rating
agency’s the outlook for the Italy’s leasing sector remains
negative.
Antonio Fabrizio
