Economy - published on 24 April 2024
Source: press office Confartigianato Imprese Marca Trevigiana
The extra cost of high bank interest rates borne by micro and small enterprises in the Marca Trevigiana is 189 million euro. An outlay that places the province in tenth place in Italy. A situation shared by the economically stronger Veneto provinces. It is no coincidence that Veneto, with its 944 million extra cost from high rates, is second in Italy, surpassed only by Lombardy.
The figure emerges from an analysis carried out by the Confartigianato study centre. “The high interest rates charged by credit institutions,’ explains Oscar Bernardi, president of Confartigianato Imprese Marca Trevigiana, ‘in addition to the economic slowdown, have led to a drop in loans to businesses. In December 2023 there were 15 billion 212 million euro in loans in the province, with a trend decline of 2.6% compared to 2021. The highest point was in September 2022, with 16 billion 104 million in loans.”
In manufacturing, the leading sector for the economy of the Marca Trevigiana, loans to businesses fell to EUR 6 billion 599 million, with a tendential minus 4.2% compared to 2021. Deep red for the construction sector, which, with its EUR 689 million in loans, saw a tendential drop of 13.2% by the end of 2023. In this sector, the decline in loans since 2021 has been constant, with a record negative minus 18.6% in June 2022. Credit to service companies also slowed down in the last quarter of 2023. Already in September, loans were down 1.2 per cent, in December the change was minus 1.3 per cent, bringing the total amount to EUR 6 billion 563 million.
The Confartigianato study also analysed the sources of financing for micro and small enterprises in the Marca Trevigiana. “In first place is self-financing,” says president Oscar Bernardi, “which involves 82.4% of SMEs. Medium- and long-term bank credit is practised by 26.5% of companies, while short-term credit is practised by 12.5%. In total, 39% of companies turn to credit institutions. This trend line confirms on the one hand the investment capacity of SMEs, but on the other is a sign of the difficulties in accessing credit. This is why the role of the artisan guarantee consortia is increasingly central, together with chamber of commerce and municipal allocations, in this slow and uncertain economic situation. The low weight of public support should also be emphasised: only 2.8 per cent of enterprises have benefited from public incentives and facilities, while European contributions or funds have affected 2.5 per cent of Treviso SMEs.
The fact that the craft sector in the Marca Trevigiana knows how to ‘do it yourself’ is also confirmed by the data on the degree to which companies depend on external sources of financing. 29.2% have some level of dependence, a figure that places the province in 69th place in Italy. Only 3.9% have a high or very high dependency, which ranks 77th nationally.
“Even more evident is the figure of dependence on banks,” concludes President Bernardi, “which concerns 31.8% of Trevisan companies, a figure that ranks 79th in Italy. High or very high dependence on banks accounts for 5.2% of companies. Credit is an important thermometer of the health of our economy. The duration of the monetary squeeze is costing our companies dearly, while other clouds are appearing on the horizon, first and foremost the geopolitical risks affecting international trade’.
