Italy again delays payment of commercial debt

|By:, SA News Editor

Italian Economy Minister Pier Carlo Padoan says the country will not make its debt repayment to private sector suppliers until the end of the year. This marks the third time the payment was delayed in 2014.

The European Commission has already opened a formal infringement procedure against Italy for failing to abide by its Late Payments Directive. The law requires governments to reduce payment delays to no more than 60 days.

Italy currently owes approximately €75B ($102B) to private suppliers, and the suspended payments have triggered layoffs, factory closures and even bankruptcies.