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Regional divides in firms’ take-up of bank debt moratoria and public guarantee schemes during the pandemic in Italy

Author

Listed:
  • Davide Arnaudo

    (Bank of Italy)

  • Michele Cascarano

    (Bank of Italy)

  • Rosalia Greco

    (Bank of Italy)

  • Valentina Michelangeli

    (Bank of Italy)

  • Litterio Mirenda

    (Bank of Italy)

  • Davide Revelli

    (Bank of Italy)

Abstract

At the onset of the pandemic, the Italian government introduced a bank debt moratorium and a public guarantee scheme to support firms’ liquidity; additional private moratoria were introduced by banks and other financial institutions. The take-up of such measures in the June 2020-December 2021 period was heterogeneous across areas. Such differences can only be partially explained by heterogeneity in the regions’ economic and productive structure: differences in firms’ observable characteristics can explain the differential take-up in debt moratoria, while the probability of obtaining a publicly guaranteed loan is larger for Southern firms. Coeteris paribus, aid intensity - i.e. the share of a beneficiary’s bank debt subject to the support measures - is higher for Southern firms in the case of debt moratoria, but not for publicly guaranteed loans. This regional divide may reflect a relatively higher benefit associated to the measures for Southern firms, which are subject, on average, to tighter credit access conditions.

Suggested Citation

  • Davide Arnaudo & Michele Cascarano & Rosalia Greco & Valentina Michelangeli & Litterio Mirenda & Davide Revelli, 2022. "Regional divides in firms’ take-up of bank debt moratoria and public guarantee schemes during the pandemic in Italy," Questioni di Economia e Finanza (Occasional Papers) 736, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_736_22
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2022-0736/QEF_736_22.pdf
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    Cited by:

    1. Marco Castelluccio & Lucia Rizzica, 2023. "Mafia infiltrations in times of crisis: Evidence from the Covid-19 shock," IFS Working Papers W23/28, Institute for Fiscal Studies.

    More about this item

    Keywords

    regional divide; Southern Italy; credit access; debt moratorium; public guarantee; Covid-19;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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