Small businesses struggling to repay the loan, in Italy and Spain in the euro zone this week after the dust settles on the horizon to Cyprus as a desperate bid to save the city signal, a bigger problem.
Default values by small and small and medium enterprises (SME), the largest employer in Spain and Italy, in a worrying clips are on the rise, spelling problems of Banks and the two countries in the heart of Europe's debt crisis.
"You can be sure, if these companies rise in bad debts, you will see more non-performing loans in the family, will not pay and credit card bills, said:" javier Santoma, finance professor at IESE business school in Spain.
Ability, Italy and Spain, accounting for 28% of the euro zone economy, compared with 0.2% of Cyprus, to pull themselves out of crisis and avoid full-fledged rescue depends on the bank's health; Fragile Banks save capital, rather than through the economy.
In Spain's three biggest lenders santander (SAN. MC), BBVA (BBVA. MC) and the imminent (CABK. MC) profits fell by an average of 60%, in 2012, due to steep the government mandatory property losses. The write-downs in the state-owned Bankia (BKIA. MC) of nearly 2.4 billion euros, a record 1.92 billion euros in losses.
In Italy, two of the largest bank intesa (ISP. MI) and Italy's unicredit bank (CRDI. MI), and set aside the merger in 2012 of non-performing loans of up to 1.4 billion euros. Smaller lenders also have increased, as prescribed by the central bank about 20 audit institutions for synchronization.
Bank POPOLARE (BAPO. MI), Italy's fourth largest profit warnings, in the fourth quarter, the audit, to loan loss preparation 684 million euros more than the total reserved in the first nine months of a year.
provisions
Italian bankers association, said at an annual rate of 16-17% rising in recent months, non-performing loan growth should be in later this year, in the second half of the year on the basis of economic recovery. It looks after the remote control, the government said earlier this month, the gross domestic product will shrink by 1.3%, this year, adjust the previous prediction of 0.2% decline.
"Level of consumption, the retail sales, industrial activity has been back to the former level, Banks are still not fully consider the real estate market decline. I suspect that if their foreclosure today, they will get a lot of, keefe, Bruyette&Woods Ronnie, an analyst said:" get their money back.
"So, I think we will see more configuration for many years. In addition, there are many uncompetitive company will exit the market, breach of contract, will lead to more losses."
Spanish bank losses for small and medium-sized enterprises get better protection in Madrid used a total of 4.1 billion euros to 4.1 billion euros of European Union aid to prop up its weakest lenders.
Government has ruled out a new round of special regulations, and analysts said, if you need more money, this will be covered in Europe.
"This may be a bank here and there need more capital, but it may not be a problem in the system, every Lumich, banking analyst at fitch ratings agency, said:" Michael Owen.
"Bad loans could during the course of this year reached its peak, in 2014 or a little, there is always a lag effect, these types of statistics."
Spanish Banks face losses of up to 2.5 billion euros from 2012 to 2014, on the base of consulting firm Oliver Wyman (Oliver Wyman), last year's 23.7 billion euro exposure of property related to small and medium-sized enterprises (smes).
In adverse circumstances, compared to $3.9 billion euros, and the basis of 9.7 billion euros ($6.5 billion) and the risk of real estate losses of $22.7 billion in bad situation.
No safety net
Behind these Numbers, people are trying to.
Raphael Balzano faces deportation days, from his two star classes hotel in Pistoia, Tuscany, this is last year forced to shut down. Electricity and the water is cut off, he couldn't pay the bills.
"In 2011, all this to the top. I'm a 26000 euro bank debt, they will not give me any new lines of credit, to try to continue, and I still owe the supplier of 50000 euros, I can not pay" Balzano told Reuters.
"No one help me, rather than the government, Banks or any unions. Our small businessman, no safety net at all. I have lost everything."
In 10 Spanish default of 3 months or more in December, and research firm Axesor said, February is one of the worst performance since 2008, more than 1000 companies to submit the security of the creditors, up 82% from a year earlier, compared with a year earlier, even if the bank launched many struggling borrower's debt.
About 1000 companies went bankrupt last year in Italy, in a month in the year to January, 7.4% of the loans for the poor, the highest in nearly 13 years, is much less than the 4.1% 4.1% of the French and German. At the other end of the scale, Greece's non-performing loan ratio were 22.5%, ended in September 2012.
With Italy and Spain are expected to shrink by 1.3% and 1.5%, under the pressure of government austerity program this year, rising bad loans of small and medium-sized enterprises, which means that the default value is consumer credit and mortgage loans more easily.
Unemployment, has a record 26% in Spain and 11.7% in Italy, the worst, because the current statistical series since 1992, also will climb small fire staff.
No marriage, no mortgage
Giuseppina, giovanni cobolli gigli has neglected the federal reserve Banks and the Italian government, and has set up a association referred to as "invisible" small business owners, to the enterprise in trouble.
"Banks have closed our small businesses the credit tap. They did not give us money, they don't trust us, we are no longer welcome the broad masses of customers," Mr. Giovanni cobolli gigli
 
 



Other News:
Small businesses spell big problems for Italy and Spain
Mexican vigilantes seize town, arrest police
The US Army Is Planning For A Failed Nuclear State In North Korea
Britain opens inquest into Berezovsky's unexplained death
Calumets starts public offering of 5.3M units
Ultrasonic cleaning principle
SKorea ready for more cyberattacks; banks recover
Kerry warns Iraq on Iran flights to Syria