Companies, the cost of money has tripled in a year and a half
By now it does not appear new, but that does not mean that it is pleasant. Every time the ECB decides to raise i interest ratesfunding to Italian companies they become more expensive. May 4th is no exception: with the aim of protecting the European economy from a recession, the cost of money has been increasingly salty for several months and the sap that gives life to the entrepreneurial activities Italians continue to be affected.
Rates for businesses are going up
The data released by the ABI leave no doubts. According to the latest monthly report of theItalian Banking Associationin March 2023 the loans to businesses and families they increased by 0.5% compared to a year earlier (+1% in February). In particular, the average rate on new operations business financing it was 3.90% (3.55% the previous month; 5.48% at the end of 2007). In short, it is not surprising that companies have them up to the hair between galloping inflation, skyrocketing raw material costs and rates to finance new projects in continued ascent.
As Abi explains, the index of business confidencein March 2023, inarea dell’euro recorded a value of -0.2 (+0.4 in the previous month), in Germania went from +2.3 to -0.1 while in France it went from -6.1 to -3.7 (unique uphill).
Costs tripled
In short, you don’t need one finance degree to understand what entrepreneurs are going through. If the latest average rate on new financing operations to businesses today it gravitates around 3.90%, only in December 2021 was it below 1.3%. In particular, between December 2021 and 2022 the cost was nearly tripledapproaching 3.5%.
In short, the only certain result with all these rate hikes is that the number of funding required by businesses continues to decline. According to official data from Bank of Italyin February 2023 the rate of change of loans to non-financial companies was -0.5% (stable in the previous month, -5.9% in November 2013, the negative peak).
Companies at the window
Throughout 2022 the loan rate provided to businesses it was in free fall. In fact, in the calendar year 2022, applications fell by 5.7% compared to 2021: with a more marked contraction for sole proprietorships, those that are usually smaller, compared to joint-stock companies, spas, which they normally have larger size (Crif data).
Thus, the average denomination required in 2022 has increased, up by 16,8% at 124,000 euros. The problem is that it is often only women who dominate big companieswhile the smaller ones remain at a standstill awaiting funding less salty.
Non-performing loans, unpaid loans, are also slightly down constant increase. In February of this year they were at altitude 15.5 billion eurosslightly increasing: they were 15.3 billion in January and 14.2 billion y December 2022.