(Finance) – Municipalities and Provinces with liquidity problems due to the increase in energy costs or affected by flood events from 1 May 2023 will be able to ask the banks the suspension of the payment of the principal amount of the mortgages. This is foreseen by the agreement reached by the Abi with the national association of Italian municipalities (Anci) and the union of the provinces of Italy (Upi). The agreement, which the ABI distributed to the associated banks via circular, defines the guidelines on the basis of which the adhering credit institutions can proceed with the suspension of the payment of the principal portion of the installments of the existing mortgages, expiring from 27 July 2023. The agreement also determines the extension of the amortization plan by six months.
In detail, the note explains that according to the provisions of the agreement, the loans subject to suspension must have the following characteristics: be stipulated according to the technical form of the loan; be made out to local authorities with reimbursement costs entirely at your expense; the debtor and the beneficiary must coincide; they must not have been granted under special laws; must be in the process of depreciation; must not submit installments that are overdue and unpaid for more than 90 days at the time of submitting the application.
At the time of submitting the application, the Entities should not be subject to winding-up procedures for phenomena of mafia infiltration or similar. Also excluded from the measure are institutions in default or in difficulty without a stable balance sheet assumption approved at the time the application is submitted.
Applications for suspension – the note continues – must reach the adhering banks by 30 September 2023. However, the possibility remains for the participating bank to offer, in its own autonomy, better conditions than those envisaged by the agreement, without prejudice to the limits established by the legislative-regulatory framework of reference.