Italian Banking Association (ABI)
President Antonio Patuelli said Sunday that many companies was
paying the price for not having planned for the eventuality that
interest rates would rise.
"Companies saved before and now they are paying more," Patuelli
said at the International Festival of Economics in Turin.
"They didn't plan for the costs linked to higher rates and there
is a risk of new company crises, with a deterioration of
credits.
"Companies did not make multi-year plans with forecasts of
adequate liquidity costs.
"The danger is that, if rates were to remain at this level or
even higher for a long time, this could lead to company crisis
and the deterioration of non-negligible parts of bank credit".
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