previous post 
In the current situation of epidemiological emergency, to support liquidity for companies headquartered in Italy that have been affected by COVID-19, the Italian export credit agency (SACE S.p.A.) will issue guarantees until 31 December 2020 to banking and financial institutions for loans in favor of those companies, if certain conditions are fulfilled.
More specifically, guarantees will be issued for loans with a duration not exceeding six years aimed at financing personnel costs, investments, or working capital used in manufacturing plants and business activities located in Italy. Guarantees will be granted for loans of up to the higher of (i) 25% of the amount of turnover realized in Italy in 2019, or (ii) double the amount of Italian personnel costs reported in the 2019 financial statements. The guarantee may be up to 90% of the amount financed, depending on the company’s turnover and the number of its employees in Italy, provided that the company was not already in financial difficulty on 31 December 2019 (as determined under EU regulations).
The law decree increases public export support, authorizing SACE S.p.A. to issue guarantees on loans granted to companies, up to a maximum total amount of EUR 200 billion.
The guarantees are available for all companies, regardless of their sector or size, that operate in Italy and abroad and that intend to acquire new customers in foreign countries.
A co-insurance system is introduced, under which 90% of the commitments resulting from SACE’s guarantee activity under these measures are assumed by the state, and the remaining 10% by SACE S.p.A. itself. The aim is to enable SACE S.p.A. to meet the growing demand to support operations that are deemed strategic for the national economy, where the agency would not have the financial resources itself to cover such operations.
Partner of Horizon Consulting in Italy – www.studiomoretti.net
