Italy delays settlement of debt arrears

Italy will settle the debt arrears it owes to private sector suppliers by the end of this year, economy minister Pier Carlo Padoan said in a newspaper interview yesterday, pushing back previous commitments.

The Italian state owes some €75bn to private suppliers, according to the most recent data from the Bank of Italy. The unpaid bills have starved companies of cash and triggered lay-offs, factory closures and bankruptcies.

“We will ensure that the arrears are paid off by the end of the year,” Mr Padoan told Corriere della Sera daily.