We investigate whether government credit guarantee schemes, extensively used at the onset of the Covid-19 pandemic, led … to substitution of non-guaranteed with guaranteed credit rather than fully adding to the supply of lending. We study this … issue using a unique euro-area credit register data, matched with supervisory bank data, and establish two main findings …

rates if the credit risk of the borrower improves with time. On another side the proposed model allows the lender not to … give the loan if the company is bankrupt or even when there is a significant deterioration of its credit risk. As a result …

We investigate whether government credit guarantee schemes, extensively used after the onset of the Covid-19 pandemic …, led to substitution of non-guaranteed with guaranteed credit rather than fully adding to the supply of lending. We study … this issue using a unique euro-area credit register data, matched with supervisory bank data and establish two main …