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Credit during the pandemics: the case of Tuscany

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  • Luca Casolaro
  • Francesco Suppressa

Abstract

During the Covid-19 economic shock the Italian Government implemented several measures aimed at facilitating the access to guaranteed loans, enhancing the role of the Fondo Centrale di Garanzia (FCG) in the financial support of the SME. In this work, we analyse various effects of these policies with a particular focus on the case of Tuscany, that exhibit a double reason for interest. Firstly, it has been interested in the first months of the 2020 by a change in regional rules that significantly enlarged the access to the Fund. Secondly, Tuscany experienced an expansion of FCG operations higher than other Italian regions. By using data from the credits register and company information, we provide evidence on the characteristics of the firms that benefited from FCG loans in terms of economic sectors, firm size and default risk. In the final section, we conduct an econometric analysis to isolate the key determinants of firms' utilization of the Fund, highlighting the importance of pre-existing banking relationships in obtaining loans backed by the Government.

Suggested Citation

  • Luca Casolaro & Francesco Suppressa, 2023. "Credit during the pandemics: the case of Tuscany," Discussion Papers 2023/296, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    • Handle: RePEc:pie:dsedps:2023/296
    Note: ISSN 2039-1854
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    File URL: https://www.ec.unipi.it/documents/Ricerca/papers/2023-296.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    credit; Covid-19; public credit guarantee schemes; SMEs; liquidity shock;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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