IMF raises growth estimates of Italy, GDP +0.7 – The Messenger

The IMF raised its growth estimate for Italy, bringing it to 0.7% for this year and +1.2 % for the next (from 0.5% and 1.1%). The announcement was the technical institution during the presentation of the report ‘Article IV’ on Italy, explaining the improvement “especially given the best results in the first quarter.”

But the loans of the banking system to the Italian SMEs continue to be “scasrsi and expensive” marks the IMF in the final communiqué at the end of the traditional mission in Italy. A situation that comes from the “heavy toll” that banks and businesses have paid to the recession. For banks, they write the inspectors of the Fund, the suffering reached a record level of 18% of loans, “becoming a systemic problem.”

The Fund suggests a strategy on a large scale strengthen banks and corporate balance sheets, two factors that will support the economic recovery. For banks, in particular, the suggestion is to “introduce time limits for write-downs of bad debts” in order to encourage banks to reduce the stock.

“We support fully the government’s reforms There are great reforms “, say the technicians of the IMF, explaining that the” challenge “of the coming years is the full implementation of the measures and that Italy should” take advantage of the right moment “to accelerate efforts.

 18 May 2015 16:18 – Last Updated: 16:24

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