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Forum | Papers » Public credit guarantees and Smes’ financial tension: the Italian case

Public credit guarantees and Smes’ financial tension: the Italian case

Paola Brighi, Federica Fanti, Sabrina Severini
February 2022 - n. 2
Keywords: Moratoria; tensione finanziaria, Piccole medie imprese (Pmi), pandemia Covid-19, relationship lending
Jel codes: G21, G32, H81

Using a proprietary quarterly database of lending decisions from 31 March 2019 to 31 December 2020, for Small and Medium-sized Enterprises (Smes) of the Central-Northern Italian area, the paper investigates how the financial measures introduced by Law Decree No. 18 of 17 March 2020 in terms of moratorium of interest could have effectively slacked financial tension during the Covid-19 outbreak. Findings suggest that the financial tension softens in the case of firms characterized by low risk, larger size as well as in presence of strong relationship lending story.

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