Italy's All Fixed: Bad Bank Loans HIt Record 10.7% Of GDP; Bond Yield At All-Time Low

 Historical Data Chart

From Reuters

Italy's government bonds rose, with 10-year securities extending a fourth weekly gain, as Prime-Minister-designate Matteo Renzi prepared to name his cabinet amid speculation he will accelerate economic reform.

The Bank of Italy said on Thursday bad loans in the country rose 20 percent year-on-year in August reaching a new record high as the third-largest economy in the euro zone struggles to recover from recession.

The loans that are least likely to be repaid were worth 173.9 billion euros ($222 billion) in August, the highest level since the start of the current statistical series in 1998, central bank data showed.

In July, non-performing loans rose 20.5 percent to 172.4 billion euros.

At the same time, lending to companies and families continued to contract, with loans to households down 0.8 percent in August after falling 0.7 percent a month earlier.

Credit to non-financial companies fell 3.8 percent after a contraction of 3.9 percent in July.

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.

Get Access