Thursday, February 21, 2013

Intesa Sanpaolo Bank CEO: 20% of Italian companies will go bankrupt

Enrico Cucchiani, CEO of Intesa Sanpaolo, Italy's second Dahon Bank (Intesa Sanpaolo), said in an interview on CNBC on Wednesday, with the impact of recession, 20% of Italian companies will go bankrupt.

Cucchiani, said: "Italian enterprises in the top 20% revenue growth over the past three years, between 35% to 50%, but the other side, unfortunately, the bottom 20% of enterprise revenue declined by 35-45% so obviously unsustainable. "

He said that a wave of corporate bankruptcy influx of Italian banking sector will have a negative impact. He said: "This will be exacerbated by the non-performing loans, banks are very reluctant to give this company the loan and I think this is not the availability of funds, but the problem of risk selection."

The latest data show a decrease of 0.9% in the fourth quarter of the Italian GDP qoq.

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