Italy has put its plans to intervene in the 300 billion euro ($323 billion) bad loan market on hold, focusing exclusively on very small company loans.

The government’s legislation, proposed by Industry Minister Adolfo Urso, would target business loans that have not yet been sold as a portfolio and be 250,000–500,000 euros each.

The initial strategy caused concern as it applied retroactively to loans up to 25 million euros, a large amount for Italian enterprises with fewer than 10 employees.

The industry ministry plans to finish its proposal early next year once parliament approves the 2024 budget.

The government is working on relief measures with a more limited scope to help only small businesses.