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Credit for small businesses in Italy, Spain contracting fast

IMF sounds 'alarm'

17 April, 16:08
Credit for small businesses in Italy, Spain contracting fast (ANSA) - Washington, April 17 - The available credit to finance small business in Italy and Spain is rapidly contracting, the International Monetary Fund warned Wednesday.

And that is dangerous for economies that are built on the strength of a small- and mid-sized business sector, the agency said, as it issued "an alarm" for small-business funding.

On the bright side, the Italian government has freed up 40 billion euros to pay off outstanding debts to businesses, the IMF noted.

But finding ways to extend credit and boosting the cash flow to entrepreneurs should be made "a priority," added the Washington-based agency.

Not only is that important to the economies of the countries, but also to the stability of the financial system, it said.

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