In mid-2013, with the return to orderly market conditions, banks began to sell off government debt. The financing of the economy Total credit to the Italian economy is shrinking. But the aggregate data mask different trends for the various categories of borrower. Given the persistent uncertainty about the timing and strength of the recovery, businesses have lowered their demand for credit.
The largest firms have increased their recourse to the bond market. In 2013 gross placements by Italian issuers were close to € billion, almost twice the amount recorded in the years preceding the crisis. Credit supply restrictions are hardest on small and medium-sized firms, generally more risky and now especially weakened by the recession.