29 November 2022 | Other

Italy has a $127 billion debt problem it is difficult to resolve

Italian companies are still in no hurry to pay their debt obligations, while the rest of the Eurozone countries are trying to reduce public loans. Due to the current economic situation, the Italian government is unable to fully deploy an anti-crisis program against the sharp increase in energy prices.

According to a report from the European Banking Authority, the amount of outstanding loans as of June 30 was a record 123.2 billion euros ($127 billion). In the previous quarter, the debt amounted to 118 billion euros. The country currently has the largest amount of government-guaranteed debt in the EU, although Italy is not the largest economy in the Eurozone.

This fact puts Georgia's Meloni government in a quandary. How long the state is able to support companies with increased costs (including electricity) in a slowing economy remains to be seen.

Any additional support to companies in the form of another loan would simply delay the problem, leaving them with even more debt. Moreover, according to Stefano Caselli, dean of the SDA Bocconi School of Management in Milan, the effects of the recession could severely affect revenues and profits.

Company MarketCheese
Period: 30.09.2026 Expectation: 800 pips
Invest in AUDUSD from 0.7034
Today at 12:07 PM 13
Period: 31.08.2026 Expectation: 600 pips
Going long on USDCAD with 1.39550 in sight
Today at 12:07 PM 5
Period: 11.09.2026 Expectation: 2250 pips
Buy AUDUSD on RBA maintaining its rate cut
Today at 10:34 AM 18
Period: 25.08.2026 Expectation: 3100 pips
Tesla shares sell-off targets $297
Today at 09:20 AM 22
Period: 30.09.2026 Expectation: 8000 pips
Go long on Bre nt crude with $90.50 target
Yesterday at 12:33 PM 43
Period: 31.08.2026 Expectation: 6500 pips
Buy SPX upon testing 7,645
Yesterday at 12:33 PM 40
Go to forecasts