Bloomberg reports that Italy has a €123.2 billion debt mountain from COVID-backed state support which, as of June 30, is outstanding. The debt has been rising too as it has increased from the previous quarter of €118 billion. Despite not being the largest country it has the largest government-guaranteed debt yet to be repaid in the Eurozone. Check out below the growing level of Italian debt from the state-backed loans.

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The problem that is building is that the energy crisis is lingering on, inflation remains high, and Italy is expected to contract 0.2% in 2023, according to the IMF. This means that the debt burden can be a growing political worry as more and more companies will struggle to meet repayments on many of these loans (just under 50%) as they mature from 2024 onwards.

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