MILAN, June 10 (Reuters) - Italian banks gorged on domestic government bonds in April while gross bad loans broke a declining trend to edge marginally higher in the middle of a nationwide lockdown to fight the spread of the new coronavirus, data showed on Tuesday.
A monthly Bank of Italy report on domestic banks’ balance sheets showed that gross unpaid loans stood at 71.08 billion euros at the end of April versus 70.95 billion euros a month earlier.
Italian banks had been steadily reducing defaulted loans left behind by past recessions.
Holdings of domestic government bonds rose to 419.26 billion euros in April from 392.18 billion euros in March. (Reporting by Valentina Za, editing by Giulia Segreti)