IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 10 Feb 2016 | Removal date: open ended
Still in force

Loan guarantee

On 10 February 2016, the European Commission approved the Italian securitisation scheme.
The scheme is meant to guarantee and later remove non-performing loans ("NPLs") off the balance sheets of Italian banks. It will be active for 18 months since the EC decision.
 
According to the EC, "Given that the Scheme is designed to address banks with portfolios of NPLs, it is by its nature selective. In light of the characteristics of the financial services markets in the Union which feature high level of exchanges and trade, the Scheme is capable of affecting trade between Member States. If it were to provide an advantage to participating banks that they could not obtain on the market, the Scheme would be capable of distorting competition."

On 6 September 2017, upon approval from the European Commission, the scheme was extended for a period of 12 months, i.e. until 5 September 2018. The Italian authorities informed the European Commission that the estimated budget remains at EUR 5 billion (approx. USD 5.6 billion).

On 31 August 2018, the European Commission approved a second prolongation of the scheme. The Commission has yet to issue a public version of this decision as well as the new end of the scheme.

A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

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