Former Ilva, Council of Ministers approves decree with interventions for creditors

The legislative decree is made up of five articles: ranging from measures to facilitate access to the SME Guarantee Fund, to provisions to contain interest rates on loans

The Council of Ministers approved a legislative decree, on the proposal of the Minister of Business and Made in Italy, Adolfo Urso, with interventions in favor of the creditor companies of the former Ilva related industries. The legislative decree is made up of five articles: ranging from measures to facilitate access to the SME Guarantee Fund, to provisions to contain interest rates on loans.

Article 3 establishes the absolute pre-deductibility of the credits of the related companies or of the financial institutions that purchased them, referring to services rendered without interruption until the date on which the extraordinary administration is ordered. Other measures for redundancy payments are also planned.

Mimit: “150 million Sace guarantee”

“Following the approval of the legislative decree, and by virtue of the provision which provides for the pre-deduction of receivables from Acciaierie d’Italia – we read in a note -, the Board of Directors of Sace today resolved to grant a financial guarantee to market conditions, up to 70% of a maximum amount of credits equal to 150 million euros, in favor of financial institutions assigning such credits. This will create the market conditions to support the Adi (Acciaierie d’Italia) supply chain” .

The decree contains measures to “protect the related companies in the event of extraordinary administration of Adi, as well as the assignees of the credits claimed by the aforementioned companies, so that they continue to keep their availability for non-recourse purchase ‘open’ of credits, ensuring the supply of goods and services and, therefore, the production continuity of the plants”, continues the note, which explains that “facilitated access for Adi related companies is envisaged” in the event of administration following the entry into force of the decree “to the SME Guarantee Fund. The provision provides for exemption from the payment of ‘one-off’ commissions for access to the Fund and for failure to complete the guaranteed operations. For the measure of the direct guarantee, provision will be made the increase to 80% for all operations. As regards reinsurance operations, the coverage of the SME Guarantee Fund is increased up to 90%. To access the Fund’s guarantee, companies must have committed, in last two financial years preceding the date of submission of the guarantee request, at least 70% of the turnover towards the client”.

“A fund has been established to support companies”

“A Fund is established at the Mimit in order to provide contributions in favor of companies, within the scope of the de minimis, to reduce the interest that they will have to pay on mortgages for new liquidity”, we read further in the Mimit note. Also envisaged are “measures that confirm the pre-deductibility of the credits of related companies, eliminating those differentiations that in the past have generated difficulties of interpretation and application and caused discrimination within the audience. Pre-deductibility is also extended to credits claimed by the transferees of the companies” . The provisions “provide that credit payments are not subject to revocation if made from the date of entry into force of the decree until the date of opening of the procedure”, continues the note. The law decree also contains a specific provision, prepared by the Ministry of Labour, regarding the extension of the Cigs to all related workers.

The statements

“The government is working on the former Ilva – the Minister of Labour, Marina Calderone, stated today on Radio1 Rai -. We have continuous and constant contact with trade unions and related industries. The objective is to preserve the workforce and guarantee the continuation of the activity: we want to continue making steel in Italy and we want to do it safely, with specific attention to preserving health and safety. We don’t want to close.”