Measures to support prevention and exit from
over-indebtedness and reduce poverty in Italy.
Riparto project experience.

27th January 2023  – Milan, Italy

Microfinanza attended the conference ‘Over-indebtedness and debt counseling‘ organized last 27th January, at the Catholic University of Milan as part of the Riparto project.
It was a day full of interventions to discuss the topic of over-indebtedness and debt counseling. An issue with an economic, social, and welfare relevance for the community and that needs integrated and structured support measures.
Thanks to Riparto project, promoted by Movimento Consumatori in partnership with Acli, the Italian Microfinance Network, and many other partners, Microfinance had the opportunity to investigate the phenomenon and provide an analytical contribution to the one-year project experience.
Davide Libralesso, financial inclusion expert at Microfinance, presented the results of this analysis: “Study and analysis of over-indebtedness profiles in the context of the Riparto project”. The main objective of this preliminary study was to investigate the population participating in the RIPARTO project and the possible change generated by the project initiatives on the beneficiaries.

What has emerged from this conference?

• We need an integrated assistance approach, with legal, economic, psychological, and social professionals working in synergy;
• We need to move from a project initiative to a structured and permanent assistance structure (debt, advice) on a national scale;
• It is necessary a pact between national institutions, local authorities (social services), the financial world (banks and financial and leasing companies), and the third sector to structure an Italian model to contrast and prevent over-indebtedness;
• The phenomenon has a social and economic cost that must be measured in all its dimensions. This is why innovative social finance instruments (such as social impact bonds) could be effectively deployed.

Considering the macroeconomic context and the reduction in purchasing power of a large component of the population, exposure to the risk of over-indebtedness adds up to a risk of poverty and great social fragility.
Over-indebtedness contrast measures are essential to solve crises and help people reduce the devastating effects that the phenomenon can have on families and society.