Credit Agreement 2019

“Imprese in Ripresa 2.0” initiative

Credit Agreement 2019 – “Imprese in Ripresa 2.0” Initiative (ABI Agreement), as supplemented by the Addendum of 6 March 2020, the Addendum of 22 May 2020 and the ABI Circular of 26 June 2020

Banca Ifis has adhered to the 2019 Credit Agreement – Businesses in Recovery 2.0, signed between the Italian Banking Association and various Business Associations which, with a special Addendum, signed on 6 March and 22 May this year, and with the ABI Circular of 26 June, extended the facilitating measures also in favour of micro, small and medium-sized enterprises (SMEs) and larger companies compared to the category of SMEs damaged by the COVID-19 emergency.

In this context, with reference to the contracts entered into by 31 January 2020, corporate customers can request:

  • For medium/long-term loans (mortgages), the suspension of the principal of the instalments or of the entire instalment for up to 24 months and, for leasing, the suspension of the implicit principal of the instalments or full instalment for up to 24 months: for both types of facility, the suspension entails the corresponding translation of the depreciation plan for a duration equal to the suspension period;
  • For mortgages, the extension of the depreciation plan up to a maximum of 100% of the residual duration;
  • For short-term loans, the extension of the deadline up to a maximum period of 270 days.

Requirements for applicants

SMEs

The suspension request must be received by 31 December 2020, unless the deadline is extended.

A corporate customer must meet the following requirements in order to request application of the measure:

  • Be a micro, small or medium-sized enterprise, as defined by the European Commission Recommendation no. 2003/361/CE of 6 May 2003, operating in Italy;
  • At 31 January 2020, not have debt exposures classified as non-performing pursuant to the supervisory regulations applicable to financial intermediaries, i.e. falling into one of the following categories: bad loans, unlikely to pay and non-performing past due exposures and/or overdrafts;
  • At the date of submission of the request for application of the measure, it should not be classified as bad, pursuant to the supervisory regulations applicable to financial intermediaries;
  • The loan to which the suspension/extension request refers must not have already benefited from a similar support measure (suspension/extension), within the 24 months preceding the date of submission of the request, with the exception of the facilities of the kind granted ex lege in general.

The company must also attach a self-certification to the request for suspension/extension, pursuant to art. 47 of Presidential Decree no. 445/2000, in which the company declares to have suffered significant damage as a result of the “COVID-19” emergency (self-certification of damages not necessary for loans completed before 16 November 2018).

Companies larger than SMEs

The suspension request must be received by 30 September 2020, unless the deadline is extended.

A corporate customer must meet the following requirements in order to request application of the measure:

  • Be a company larger than a small or medium-sized enterprise, as defined by the European Commission Recommendation no. 2003/361/CE of 6 May 2003, operating in Italy;
  • At 31 January 2020, not have debt exposures classified as non-performing pursuant to the supervisory regulations applicable to financial intermediaries, i.e. falling into one of the following categories: bad loans, unlikely to pay and non-performing past due exposures and/or overdrafts;
  • At the date of submission of the request for application of the measure, it should not be classified as bad, pursuant to the supervisory regulations applicable to financial intermediaries;
  • The loan to which the suspension/extension request refers must not have already benefited from a similar support measure (suspension/extension), within the 24 months preceding the date of submission of the request, with the exception of the facilities of the kind granted ex lege in general.

The company must also attach a self-certification to the request for suspension/extension, pursuant to art. 47 of Presidential Decree no. 445/2000, in which the company declares to have suffered significant damage as a result of the “COVID-19” emergency (self-certification of damages not necessary for loans completed before 16 November 2018).

 

Discretion of the Bank

The Bank will evaluate the requests for access to the support measures independently, according to the principle of sound and prudent management and in compliance with its own procedures, providing a response to the corporate companies according to the terms specified below.

The interest rate for suspension/extension operations may be increased in relation to the one envisaged in the original loan agreement, solely on the basis of any higher costs for the bank, strictly connected to execution of the operation itself (for suspensions, up to a maximum of 60 basis points). Without prejudice to the foregoing, customers will not be charged any additional costs and expenses other than those incurred by the Bank towards third parties for the purpose of carrying out the suspension.

For the purposes of acceptance, the Bank has the right to evaluate any additional guarantees to mitigate or cancel any increase in the interest rate, considering the size and quality of the hedge itself.

How to Apply

The company must submit an application to the Bank, completing one of the following forms depending on the type of product:

SMEs:

Companies larger than SMEs:

The form must be:

  • fully completed;
  • digitally signed by the subject with the necessary legal representation powers of the company;
  • sent via certified e-mail to the addresses indicated below.

If the form is signed with a handwritten signature, instead of digitally, it must be sent by registered mail to Banca Ifis, Via Gatta, 11 – 30174 Mestre (Venice) – Ufficio Modulistica e Contratti, and sent in advance via certified e-mail to the following addresses:

Acceptance of the application by the Bank is subject to consent to the suspension/extension, by third parties entitled to provide it, such as, for example, third-party providers of mortgages or guarantees.

The Bank will assess the application and send its response to the certified e-mail provided in the application, within 30 business days from receipt of the application, unless any further details are required.