Moody's ups Italian banks' outlook

Govt support will offset rise in NPLs says rating agency

(ANSA) - MILAN, MAR 25 - Moody's on Thursday upgraded Italian banks' outlook from negative to stable saying the economy would start growing a gain this year after the strong contraction due to COVID-19 last year.
    The ratings agency said the Italian banking sector would benefit from lower International Financial Reporting Standard (IFRS) provisions on losses on loans with respect to last year, although adjustments would remain high.
    It said problematic loans would rise, especially after COVID moratoria end.
    However, continued government support in the form of guaranteed loans, together with the continuation of the shedding of non-performing loans (NPLs), will partially compensate for the deterioration of the quality of assets, it said. (ANSA).
   

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