Visco, growth cuts the debt but rigor on the accounts

2022-02-12T18:30:01.853Z

The recovery in GDP brought debt / GDP down to close to 150 percent and in the spring the economy, which slowed down in the winter due to the pandemic, "will regain strength". (HANDLE)

February 12, 19:17

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Visco, growth cuts the debt but rigor on the accounts

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Visco, in politics and social partners, no chase wages-prices © ANSA

Visco, Italian economy recovered in spring, + 4% 2022 © ANSA

Visco, in politics and social partners, no chase wages-prices © ANSA

Visco, Italian economy recovered in spring, + 4% 2022 © ANSA

Visco, in politics and social partners, no chase wages-prices © ANSA

by correspondent Andrea D'Ortenzio (ANSA) - PARMA, 12 FEB - Laripresa del GDP cut the debt / GDP by close to 150 percent and in the spring the economy, which slowed down in the winter due to the pandemic, "will regain strength".

But we must not let our guard down on the rebalancing and rigor of public accounts because Italy has 400 billion euros of BOTs and BTPs to place every year and if anything it will have to help selectively those companies or sectors in difficulty.

The Governor of the Bank of Italy Ignazio Visco, from the Forex of Parma, launches a message of "optimism" for a future to be consolidated "with the participation of all. A speech of about 50 minutes, with many additions 'off the cuff' to the text, opposite to a reduced aplatea but choice of bankers and managers of the financial sector.

Visco confirms what was anticipated by Prime Minister MarioDraghi on the decline in debt with which he had recently spoken and remembers that this is an estimate that has already emerged in the bank's economic bulletin in January and that it will be made official by Istat only in March.

This is a decrease of 10 points lower than the first forecasts.

It is a picture, that traced in the speech, of an Italy that is emerging from the crisis, very different from that of 2012, the year of his debut as governor also in Parma, in which our country ended up in a strong recession.

This time the elements are different: the ECB continues in its expansion phase and is gradually withdrawing stimuli and the banks "are overall solid" and are no longer the cause of the problems but a help.

Frankfurt will be so patient.

Italy must,

Visco warns, not to fall into the wage-price spiral that plunged the country into persistent inflation in the 1970s.

The increase in prices, he points out, is a tax, similar to that of the 'sheikh' of the oil crisis.

This is an external shock that has to be paid for very badly while a European strategy is outlined.

The jump in prices, caused not only by energy but by other factors, however, "will be reabsorbed in 2023" even if in the meantime eroding real incomes.

It is therefore good for the government to launch emergency measures against expensive bills or to help sectors such as tourism or restaurants still affected by the pandemic.

But there is no need for a "generalized public intervention" such as the moratorium on loans (which expired in December) and a disorder on the accounts.

Indeed, we cannot afford tensions on government bonds which, fortunately, do not seem to be affected by the gradual normalization of interest rate and monetary policy.

An attitude that banks like.

President Abi Antonio Patuelli stresses that "the Italian economy must not be assisted"

but we must intervene where the crisis still hits.

And the president of Intesa Sanpaolo Gros Pietro points out how the ECB is right not to act on the monetary front "because it would be useless and counterproductive" on inflation determined by external agents.

Therefore, the banks, which strengthened in 2021 and returned to grind profits and dividends, will see a return in the growth of non-performing loan flows by the end of the moratorium, albeit not at worrying levels.

For the smaller ones, supervise directly and with "cases of fragility", the Vigilance keeps the headlights pointed.

A 20% of these did not correctly classify the loans subject to a moratorium and therefore "more incisive interventions" by the authorities are not excluded.

And Visco returns to an old theme:

the need for a European mechanism to manage small bank crises.

In fact, if in the United States they fail so many without any backlash "in Italy when one goes into crisis" there are "headlines and investigations by parliamentary commissions".

(HANDLE).

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Visco, growth cuts the debt but rigor on the accounts

Visco, growth cuts the debt but rigor on the accounts

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