Italy adopts €400b liquidity plan amid coronavirus crisis
Published : Tuesday, 7 April, 2020 at 4:38 PM Count : 167
Italy adopted a new package of financial management, including a public guarantee of up to € 400 billion in loans and investments to strengthen anti-takeover rules and business support.
At a press conference Monday evening, Prime Minister Giuseppe Conte said, "With the decree we have approved, we give our businesses $ 400 billion in immediate liquidity."
Rome, through financially owned export lending company SASC, will guarantee up to 90 percent of its $ 200 billion business loan, Finance Minister Roberto Gualtieri explained. An additional $ 200 billion has been allocated as investment guarantee to support export.
The minister also said that companies that benefit from state-guaranteed loans will not be allowed to distribute dividends to shareholders.
Guelotti said the new guarantee system will be launched "in the coming days".
The decree also extends the scope of existing investment screening tools to protect strategic companies from foreign leverage.
Conte said the ability to monitor foreign takeovers would extend to sectors including banking, insurance, energy, transportation, water, health, food security, artificial intelligence and robotics.
Last week, the European Commission encouraged member countries to strengthen their investment screening tools.-Internet