Between the end of 2008 and the end of 2014 in the euro area lo stock of non-financial corporate loans it decreased by 553 billion euros. The decline was very pronounced in Spain (-410 billion), less so in Italy (-66 billion) and Germany (-57 billion), while in France there was an increase of 44 billion euro.
Among the companies, the most evident impact was for those of small and medium size, traditionally more dependent on bank credit. In Italy, to facilitate easier access to funding sources, the authorities have prepared a series of interventions of a technical, regulatory and fiscal nature. A first line of intervention concerned the operation of the Guarantee Fund for small and medium-sized enterprises. The Fund has been strengthened by increasing the capital endowment, extending the range of potential beneficiaries and broadening the access criteria.
In the first 10 months of 2014, the Fund offered guarantees for an amount of 6,5 billion euro to support a loan volume of 10,2 billion euro. Again in support of credit, one of the priorities is the relaunch of the securitization market, the depth of which decreased during the crisis, going from a value of 594 billion euros in 2007 to 21 billion euros in 2014.
A second line of action concerned the expansion of funding sources through new channels. Private placements fall into this vein. It's about intermediate financing instruments between bank lending and the public offering of bonds, aimed at companies that do not possess the size or transparency requirements necessary to access the public market. According to a recent study, there were 2012 private placements in Italy between 2014 and 207, for a total value of 3,9 billion euro.
Private placements include part of the issues of minibonds. From the launch of the market in 2012 to April 2015, around 120 issues were carried out for a counter value of 5,5 billion euro. After an initial phase in which the market was characterized by high-denomination mini-bond issues, the growing participation of smaller companies led to a reduction over time in the unit amount of loans. Approximately 60% of the issues were characterized by a value of less than 10 million euro. In Italy, the market for private placements and minibonds is particularly affected by the lower development of the asset management industry compared to other countries as well as by the limited interest of investors in non-traditional investment instruments, just think that unlisted securities are almost all absent in the portfolios of institutional investors.
Attachments: Focus no. 16 – 06 May 2015.pdf
