Enterprise Rating System (ERS): Improvement of the rated corporations distribution. What is the extent of the extra funding?
Out of 12,807 firms in our initial sample, 2,899 were eligible for extra funding. This number accounts for 22.6% of the sample. If the eligible firms increased their liabilities to match their equity level, then their new theoretical liabilities would be more than twice as high at €18.8 bn from €9.1 bn. This transformation is translated to a total amount of extra funding of €9.6 bn, equal to 5.2% of GDP.
Potential extra funding (in € bn)
Source: ICAP CRIF DATA.Prisma, ELSTAT, Piraeus Bank Research
