Italy's recession is going to cause a fifth of Italian companies to fail, warns Enrico...

|By:, SA News Editor

Italy's recession is going to cause a fifth of Italian companies to fail, warns Enrico Cucchiani, the CEO of banking company Intesa Sanpaolo. "The bottom 20% has seen top line shrinking 35-45%, so it's clear that these companies won't make it," Cucchiani says. "It is going to fuel non-performing loans and that makes banks very reluctant to lend to this sort of company." Italian banks are sharply lower, with Intesa -3.8%.