“Decreto Liquidità”: main financial measures

On 8 April 2020, Decree-Law no. 23/2020, the so-called “Decreto Liquidità” intervenes to ensure the necessary liquidity to companies based in Italy, affected by the Covid-19 epidemic; in particular, thanks to the intervention of SACE S.p.A., guarantees are provided, until 31/12/2020, in favour of banks, national and international financial institutions and other entities authorized to exercise credit in Italy, in support of loans to companies in any form.

Depending on the size of the company requesting the guarantee covers from 70% to 90% of the loan, below certain thresholds and has a maximum duration of 6 years. The percentage guaranteed can be increased at the discretion of MiSE, if the company is particularly relevant at a strategic level in the production chain.

The financing must be used to cover labour costs, working capital and investments incurred for the operation of production activities based in Italy.

The Decree Law provides for a simplified procedure for the issue of guarantees covering loans in favour of companies with less than 5,000 employees in Italy and with a turnover value of less than €1.5 billion.

Through the PMI Fund, professionals, craftsmen and businesses can access financing equal to 25% of revenues up to a maximum of €25,000, without creditworthiness assessment; the financing is 100% guaranteed by the Fund itself, can have a maximum duration of 6 years and repayment of the capital cannot begin before 24 months after disbursement.

The Government has also decided to set up a Committee for public financial support to exports, which will establish the parameters and procedures for the issue of guarantees and insurance coverage by SACE S.p.A. in the event that prior authorisation by the MEF is not required.