After Italy announced one of the toughest lockdowns in Europe, the Italian government made available a €400 billion stimulus package to assist the economy during these trying times. Prime Minister Giuseppe Conte announced that such a package is the most powerful in Italian history. The announcement of this package is in addition to the government guarantee loans totalling €340 billion to assist struggling businesses. These are some of the measures made available to Italian citizens.
Government Guarantee Loans
All companies experiencing financial distress as a result of the coronavirus pandemic will be eligible to apply for bank loans to assist with retaining staff and preventing the business from bankruptcy. The state will back loans to a total of €750 billion.
The loosening of EU regulations made it possible for member states to provide such unprecedented aid to companies. Furthermore, this aid hopes to stabilise the economy during the lockdown and keep it flowing.
Moratorium on Corporate Debt
The Italian Banking Association, together with the Italian government, announced a moratorium on debt repayments. This repayment holiday is for loans, mortgages and a line of other credit facilities that were taken out up to January 31, 2020. The moratorium applies to companies experiencing financial difficulties caused by the COVID-19 pandemic.
Support Production and Supply of PPE and Medical Devices
Financing facilities have been introduced for the production and supply of medical equipment and necessary personal protective equipment needed to fight the ongoing pandemic. The Italian government has set aside an amount of Euro 800.000 for the required PPE and medical devices.
Measures to Support Export
The government announced a co-insurance system that aims to support the export market. Funds will be made available for cash flow in Italian export. Also, a cancellation on costs incurred for exhibitions and cancelled trade fairs has been introduced. The government will assume 90% of non-market risks and guarantees issued by the SACE, while the company will be responsible for the remaining 10%.
Employees working for start-up companies will be entitled to up to 80% of their salary in the event that they are not able to proceed with their duties during the lockdown. Also, an extension of mortgage payments has been made available to self-employed people. Seasonal workers in the tourism and agriculture sector to receive an allowance of EUR 600 for March.
Foreign takeovers blocked
“Golden Power” rule is a rule in Italy that allows foreign entities to take over Italian companies. The Prime Minister announced a block on such measures for the duration of the pandemic. He went on to include sectors likes healthcare, energy and the banking industry.
Schools and emergency services
An amount of 450 million euros has been assigned to emergency services. Furthermore, the government made provision to hire 4500 additional teachers. These measures will assist schools in managing the current coronavirus crisis.
After one of the longest lockdowns in Europe, Italians now get to enjoy some freedom as lockdown gets eased. To learn more about eased restrictions in Italy, visit A Bold Move to End Lockdown in Italy.