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Italy plans debt moratorium to ease coronavirus lockdown

Relieving consumers and business from repaying debt could cushion the economy but complicates how the fragile banking system copes

Italy is planning to introduce a large-scale moratorium on debt repayments, including mortgages, to help families and businesses cope with the coronavirus outbreak.

The announcement, made by Italy’s deputy economy minister Laura Castelli in a radio interview, follows the government’s decision Monday to lock down the entire country. Economists expect the shutdown to lead to a sharp economic slowdown.

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