(MENAFN) The Italian government announced that over the coming 12 months, it will pay USD52 million of the country's debt to private firms, reported Reuters.
The aim of the move is to provide financial aid to companies that nearly ran out of money and were almost unable to raise credit from banks, as they also face tight credit conditions.
Prime Minister, Mario Monti, stated that the country's deficit will stay within the European Union's fiscal deficit ceiling of 3 percent of gross domestic product (GDP).
However, in March, the government lessened its deficit goal for 2013 from 1.8 percent to 2.9 percent of GDP, in part, to be able to provide the funds to private companies.
It is worth noting that according to the Bank of Italy, total accumulated claims by Italian firms reached around USD116.86 billion at the end of 2011.
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