The economic growth accelerated to a 10-year high. Fiscal consolidation significantly reduces government debt, a proof of commitment of fiscal discipline. Prudent macroeconomic management has also led to the declining trend of inflation and exchange rate volatility as well. In the financial sector, the banking sector is well capitalized and in a better balance sheet structure.
In coming months the volume of such operations may be fueled by several factors: the cyclical recovery will improve borrowers’ creditworthiness, bolstering specialized intermediaries’ demand for impaired assets; an analogous effect will continue to come from the concomitant reduction of “Italy risk”, as evidenced by the narrowing of the spreads on government bonds.