This article provides an in-depth evaluation of the impact of public credit guarantees to SMEs in increasing credit availability and reducing borrowing costs, without compromising their financial sustainability. Extensive econometric tests have been carried out by comparing the performance of the SMEs that benefited from such guarantees in Italy with a sample of comparable firms. The findings confirm the presence of a causal relationship between the public guarantee and the higher debt leverage of guaranteed firms, as well as their lower debt cost. Italy’s guarantee instrument has proved to be an effective instrument in these respects.

The impact of public guarantees on credit to SMEs / Zecchini, Salvatore; Ventura, Marco. - In: SMALL BUSINESS ECONOMICS. - ISSN 0921-898X. - 32(2)(2009), pp. 191-206.

The impact of public guarantees on credit to SMEs

Ventura, Marco
2009

Abstract

This article provides an in-depth evaluation of the impact of public credit guarantees to SMEs in increasing credit availability and reducing borrowing costs, without compromising their financial sustainability. Extensive econometric tests have been carried out by comparing the performance of the SMEs that benefited from such guarantees in Italy with a sample of comparable firms. The findings confirm the presence of a causal relationship between the public guarantee and the higher debt leverage of guaranteed firms, as well as their lower debt cost. Italy’s guarantee instrument has proved to be an effective instrument in these respects.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11573/1246519
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