Credit trend is considered one of the most important items in order to understand its sector trend.

Data state that credit to craft enterprises in Veneto region showed a positive trend in 2007.
Figures come from consortia partners of CRGA (Regional Underwriting Consortium for Craft), which include 63,000 regional enterprises: the last year closed with an increase, compared to 2006, of 9.8% as for approved guaranteed amounts, and 16.1% as for number of operations.

“This is a significant survey, since it confirms the vitality of Veneto craft enterprises despite the troubles with short-term economic indicators. – says the president of CRGA Mario Citron – And if we have a look at short and medium-term dynamics, the positive evaluation comes out even strengthened”.

Last year, medium and long-term financings grew by 15.9%, reaching 313,650 millions, while the number of operations rose by 4.7 points, for a total of 5,971 millions.

For what concerns short-term values, funded operations have been 15,316 (+21.2%) for a total of over 602 millions (+6.9%).

On the whole, financed amounts reach nearly 916 millions as opposed to the 834 in the previous year.

Mr. Citron goes on commenting: “In our opinion, these figures confirm that the approach of craft enterprises towards credit is becoming more and more mature. As a matter of fact, short-term proceedings soar considerably but they deal, on average, with lower amounts, which means that this kind of credit is used above all for the daily management; on the contrary, with regard to medium and long-term financings, their amounts grow more than the number of proceedings”.

Are then enterprises becoming more structured and stronger? Do they invest more? Are they able to plan their activity on a medium or long period?
“It seems to be so, – explains Mr. Citron – even if a more accurate analysis of the information might suggest to be more cautious.

Indeed, what emerges from the survey is also a troublesome constancy and a strong consistency in the percentage of medium and long-term funded amounts which are granted for purposes such as: the demand for liquid assets in order to cover the increase of taxation, a growing need to consolidate short-term liabilites and also to remedy delays in the payment of customers: in two years, we’re overstepping the 37%.

In this way, a noteworthy amount of money, more or less 116 million euros, is detracted from its natural destination, that is, investments in capital goods”.

Citron concludes by saying: “Unfortunately, this negative percentage is going to grow during the current year, if funding applications for investments in capital goods confirm the slump it marked in January 2008”.