Mutual Loan-Guarantee Consortia and the crisis: reforms, new arrangements and old challenges
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Abstract
Mutual Loan-Guarantee Consortia (MLGC) facilitate the matching of demand and supply in the credit market and have played an important role in mitigating credit constraints for Italian SMEs during the financial crisis. However, the Italian MLGC system is currently experiencing tough times due to a number of reasons. In this short paper, we first review the most recent performances of MLGC, paying particular attention to their regional distribution. We then provide some remarks on the proposal of reform of the MLGC legislation.
Keywords
- Mutual Loan-Guarantee Consortia
- Credit Rationing
- Italian Mezzogiorno
- Bank-firm Relationships
