The Italian government decided on Monday (7) to unlock EUR 400 billion – around R$1,9 trillion – to inject liquidity into companies to help them deal with the coronavirus pandemic.
For comparison purposes, Brazilian GDP – Brazilian Domestic Product – in 2019, for example, was R$7,3 trillion.
“With the approved decree, we provide immediate liquidity of 400 billion euros to our companies, small, medium or large: 200 billion for the domestic market and another 200 billion to support exports,” announced Prime Minister Giuseppe Conte, in a press conference.
“With this decree, we carried out an unprecedented intervention”, highlighted the Minister of Economy, Roberto Gualtieri.
The government will unlock “200 billion euros of public guarantee for loans, at the 90% level, for companies of all types”, a guarantee that could reach up to 25% of turnover or double the cost of staff.
“The guarantees will be delivered through a very simple and direct system to the banking system, through the company Sace”, a Depositary Fund company, he added, with several conditions, such as the prohibition on the distribution of dividends.
To this will be added 200 billion euros of guarantees, also through Sace, to support exports.
