AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYNo
On July 1st, 2009, the Italian Parliament approved a law decree titled "Anti-crisis measures".
According to the Ministry of Economy and Finance, the decree approves the creation of a trade finance instrument defined "Export Banca".
The latter is a system of export financing, in which export or internationalization credit is granted at advantageous interest rates. Interest rates are set to be at least at the Euribor level.
Particularly, the system is financed by the Loan and Deposit Fund (Cassa Depositi e Prestiti) and SACE (insurance group). The company that wishes to apply for funds at the lower interest rate still has to apply at a bank. The bank itself then turns to the above-mentionned institutions and asks for an insurance on the funds lent.
Moreover, if the bank is not willing to provide credit, Export Banca can also intervene with direct financing.
The granted funds are only available for companies that:
i) are corporate enterprises with a turnover not greater than 250 million euros;
ii) have legal domicile in Italy and carry out a substantial part of the productive activity in Italy;
iii) realize at least 10% of their turnover abroad;
iv) have been in the business for at least two years.
The activities of the Export Banca system have been renewed and are now confirmed until the end of 2013.
The system harms all foreign firms operating in Italy and abroad and competing with the ones benefiting from the trade finance support.
⚑ Please report this page in case you detect an inaccuracy in its content.