Article 65 of Decree Law 14 August 2020 no. 104 “August Decree“, which came into force on 15 August 2020, states:
- For companies already entitled to the support measures provided for by Art. 56, paragraph 2, of the so-called Cura Italia decree, there will be an automatic extension of the moratorium until 31 January 2021, without any formalities, except in the case of an express waiver by the beneficiary company, to be sent to the Bank by 30 September 2020 (see section below: Waiver of the automatic extension until January 31, 2021);
- For companies that, at the date of entry into force of the August Decree, presented exposures that did not entitle them to the support measures of Art. 56, paragraph 2, of the so-called Cura Italia Decree, may now be entitled according to the same conditions and procedures provided for by the aforementioned Art. 56 (see sections: Requirements for applicants – How to apply).
Furthermore, pursuant to Art. 77 of the August Decree, the extraordinary moratorium for companies in the tourism sector provided for in Article 56, paragraph 2, letter c), of the Cura Italia Decree, with regard to the payment of mortgage instalments due before 30 September 2020, is extended until 31 March 2021. The validity of this provision is, however, subject to the authorisation of the European Commission.
The provisions for financial support to businesses envisaged by Art. 56, paragraph 2, of the so-called Cura Italia decree, as amended by Art. 65 of the so-called August Decree, are summarised below:
- Limitations on the revocation of credit lines: for relationships involving revocable credit facilities and for loans granted against credit advances existing on 29 February 2020 or, if higher, on 17 March 2020, the amounts granted, both for the part used and for the part not yet used, cannot be revoked in whole or in part until 31 January 2021;
- Extension of non-instalment loans: for non-instalment loans with contractual expiry before 31 September 2021, the related contracts are extended, together with the respective ancillary elements (for example guarantees) and without any formalities, until 31 January 2021 under the same conditions;
- Suspension and extension of mortgages and leases: for mortgages and other loans with repayment in instalments, the payment of instalments or lease payments due before 31 January 2021 is suspended until 31 January 2021 and the repayment plan for instalments or payments subject to suspension is deferred, together with the ancillary elements (for example guarantees) and without any formalities, in a manner that ensures the continuity of the ancillary elements of the receivables concerned and does not provide for new or higher charges for both parties; companies are entitled to request the suspension of capital repayments only.