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Italian Banks Extend Loan Moratorium to Businesses

The Italian Banking Association agreed to extend a moratorium on loan payments by small and medium-size companies as they cope with the country’s fourth recession since 2001.

The agreement with the government was signed in Rome today, the association known as ABI said in a statement on its website. The moratorium, begun in August 2009, allowed 260,000 companies to keep 15 billion euros ($20.2 billion) of “liquidity at the disposal of the real economy,” ABI said.

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