With three separate deals finalized in the past few weeks European Investment Bank (EIB) e Banco Popolare they allocated 350 million to SMEs, mid-caps and projects that promote youth employment in Italy. These agreements strengthen the collaboration between the bank of the European Union and Banco Popolare, which is particularly important for bringing new financial resources to the Italian manufacturing world at advantageous conditions in this phase of the first signs of exit from the long recession.
“With Banco Popolare we have a long tradition of working in favor of small and medium-sized enterprise projects. I express satisfaction with the agreements signed, with particular attention paid to loans to combat youth unemployment: in all regions of Italy it is a real emergency, and only by favoring the conditions for businesses to be able to invest again can we make a contribution to the formation of new jobs,” commented the Vice President of the EIB, Dario Scannapieco.
“The signing of these new agreements – he explains Maurizio Faroni General Manager of Banco Popolare – guarantees an important incentive for youth employment and allows the immediate usability of new loans to businesses. The initiative is further confirmation of Banco Popolare's commitment to relaunching the economy of our territories, recently reaffirmed with the Industrial Plan which provides for more credit loans over the three-year period for several billion euros. Thanks to the collaboration with the EIB, the procedures for accessing credit are simplified and integrate the ordinary medium-term financial support interventions put in place by the Group in favor of businesses, with the hope that they will be able to seize the growth and development opportunities in the different sectors of belonging.
Youth employment (50 million)
In detail, a 50 million loan concerns projects advanced by SMEs, Mid-Caps and innovative start-ups to encourage new jobs for young people aged between 15 and 29. These loans are part of the Jobs for Youth programme, activated by the EIB after the Brussels European Council in June 2013. The total EIB resources dedicated to Italy with Jobs for Youth is 440 million to date. SMEs (up to 250 employees), Mid-Caps (up to 3000 employees) and start-ups that meet at least one of the following requirements are eligible for loans:
– have hired at least one worker (three for Mid-Caps) aged between 15 and 29 in the six months preceding the loan application or will hire him in the following six months;
– offer vocational training programs for young people, or internships/training programs for young people;
– have entered into a cooperation agreement with a technical institute or school or university to employ young people (for example during summer internships);
– have an ownership structure in which the majority of the capital (over 50%) is held by young people under 29 years of age.
PMI (200 million) and Mid-Cap (100 million)
200 million euros are intended to support Italian SMEs, with the use of EIB funds at particularly favorable conditions. The loans are intended to finance both new and ongoing investments, provided they have not yet been completed. The interventions, relating to companies active in all productive sectors (agriculture, craftsmanship, industry, commerce, tourism and services) may concern the purchase, construction, expansion and renovation of buildings; the purchase of plant, equipment, vehicles or machinery; expenses, ancillary charges and intangible assets related to projects, including research, development and innovation costs; the permanent need for working capital linked to the operational activity. Banco Popolare will also provide its own resources to the beneficiary SMEs, thus increasing the overall ceiling available to support the Italian economic system. Finally, a 100 million credit line for Mid-Caps signed at the end of 2013 is already being disbursed.
