Bank of Italy says 20% jump in bad loans

(ANSA) - Rome, October 9 - Bad loans held by Italian banks jumped by 20% in August compared with the same time last year, the Bank of Italy reported Thursday.
    That was slightly better than the annual figures for July, which showed a growth of 20.5% in bad loans compared with the same period in 2013, the central bank said.
    It also reported that lending to the private sector had declined in August, with loans to households down by 0.8% compared with the same time last year and non-bank commercial lending down by 3.8% on an annual basis.
    In July, household lending had fallen by 0.7% compared with last year and commercial loans were down by 3.9% compared with July 2013.
    Italy is mired in its third recession since 2008, leading to rising bankruptcies, unemployment, and threats of lingering deflation.