GOVT TO HELP SMALL BUSINESSES WITH CREDIT, TREMONTI SAYS

GOVT TO HELP SMALL BUSINESSES WITH CREDIT, TREMONTI SAYS

(ANSA) - Rome, October 29 - The Italian government is examining ways to help small businesses obtain and manage credit once the current one-year moratorium on loan payments expires, Economy Minister Giulio Tremonti said on Thursday.

In an address marking World Savings Day, the minister explained that ''we are thinking about one or more assistance funds, the structure of which need to be compatible with the market''.

The moratorium, he added, ''was good but it is not enough''.

The Italian Banking Association (ABI) and associations representing small businesses and other enterprises, including farms, signed an accord in August to suspend payments on borrowed capital for one year, although interest on the capital will still have to be paid.

The accord also suspended payments on capital included in leasing agreements, for both real estate and non-real estate assets, and extended by 270 days the deadlines for the prepayment of short-term loans.

One approach the government may take, Tremonti said, could be adjusting taxation, granting greater deductions, ''because personally I prefer to help businesses directly rather than work through the banks''.

''In any case, there will probably be a combination of approaches'','' he added.

In his address, Tremonti also spoke about Italy's pension system which he said ''is one of the most stable in Europe''.

This stability was obtained, he explained, ''thanks to the consent of our institutions and a responsible position adopted by the social parties''.

''Of course, it is not perfect but it is among the most stable in Europe,'' he added.

Looking at Italy's position in Europe, Tremonti said ''we are on the same level as France and Germany and in a more solid position than Britain, Ireland and Spain. In fact, in many ways we are better off than Germany and France''.