“Italy & Tourism” credit line facility project
The Italian Government is now deeply involved in several activities aimed at increasing the competitiveness of the Italian tourism sector which currently engages almost 3 million employees and a share of GDP in excess of 10%.
To this extent, being aware of the strategic role to be played by the banking system in order to foster the economic and financial development of tourism enterprises, the Ministry of Tourism announced [on June 3, 2009], the start of a credit line facility project called "Italy & Tourism" (the “Project”). This project aims to provide players in the tourism sector with significant credit lines at favourable terms compared to those available under normal banking conditions.
The global ceiling of the credit line facility currently amounts to 3 billion euros as an aggregate of individual ceilings available from certain participating banks (namely Intesa San Paolo, Unicredit, Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Banco Popolare, Banca Popolare di Milano, Banca Popolare di Sondrio, Banca Popolare dell’Emilia Romagna). This ceiling is intended to support the investments required to upgrade and develop businesses in the tourism sector, including machinery and equipment renewal.
All tourism enterprises operating in Italy, whether newly incorporated or an existing company may in principle benefit from these credit lines.
We set out below a summary of the main financial terms and conditions offered by the banks participating in the Project. Each point represents the range of suitable conditions made available by the bank. Please note that an assessment on the specific requirements provided by each bank should be carried out on a case by case basis.
- Financing amount: No minimum amount is provided. The maximum amount may be set at (i) Euro 500,000.00 for unsecured transactions; (ii) Euro 2,000,000.00 for collateralized transactions or (iii) a value equal to 80% of the investment plan to be realized (VAT excluded), without any maximum limit.
- Duration: Financing may be provided with a duration ranging from 6 months to a maximum of 20 years. The terms may be inclusive of a grace period.
- Rates: RIBS and Euribor 1/3/6 months 360 based (due to the instalments recurrence), plus a spread ranging from 1% to a maximum of 2.5%.
- Instalments: Monthly, quarterly and half-yearly instalments may be provided. In order to cope with seasonal trend, an annual reimbursement of capital may also be allowed.
- Securities: Several securities may be granted including: (i) personal securities, even collateral or (ii) first mortgages.