European Bank for the investments (EIB) and of Cassa Depositi e Prestiti (CDP) subscribe to a new 500 million loan to support the reconstruction of residential and production buildings destroyed or seriously damaged by the earthquakes that hit Central Italy (Abruzzo, Lazio, Marche and Umbria) in 2016 and 2017. The funding, explains a note, will allow the Italian State to save financing over the 25-year duration of the loan.
The 500 million are the first tranche of a total loan of 750 million approved by the Board of Directors of the Bank of the European Union for the reconstruction of private buildings and productive activities in Central Italy, to which must be added 1 billion made available by the EIB also through CDP in June 2017. Resources fall under Central Italy Earthquake Reconstruction Plafond launched by CDP at the end of 2016. A further billion was then allocated by the EIB to the MEF for the reconstruction of schools, hospitals, courts and administrative offices, finalized in March 2018. Overall, the EIB will provide 2,75 billion for public and private reconstruction in the Regions affected by the earthquake.
The Chief Executive Officer and General Manager of CDP, Dario Scannapieco he stressed that "particular attention" will be paid to "improving the quality of homes and production sites, both from the point of view ofenergy efficiency and from that of seismic safety". Elements "indispensable to promote lasting and sustainable growth of the regions involved". Furthermore, with this operation, “CDP confirms its role as a facilitator in accessing European resources and opportunities to contribute to Italy's sustainable development”, concluded Scannapieco.
Who are the resources channeled by CDP intended for?
In detail, the resources channeled by CDP for private reconstruction are intended for households and businesses affected by the earthquake through subsidized loans disbursed by affiliated banks based on the progress of the reconstruction interventions eligible for subsidies. In particular, the charges of repayment of loans are paid by the State through a mechanism which provides for the recognition, in favor of the beneficiaries, of a tax credit which will be transferred to the affiliated banks and which they will use to offset their tax debts. The amount of the tax credit is equal to the installments due (principal and interest).
Agreement for monitoring and reporting of projects supported by the EIB
In this context, today Monday 10 October, Jasmine Vigliotti (EIB Vice-President) e John Legnini, (Government special commissioner for reconstruction in the regions of Abruzzo, Lazio, Marche and Umbria) have signed an agreement to ensure the monitoring and reporting of projects supported by the EIB, with particular regard to environmental sustainability.
"The resources made available by the state are sufficient, especially if the funding, as in this case, is provided by leading international financial institutions, reducing the burden on the public budget," said Leghini.
“Since 2016 to date, the EIB has already made €2,75 billion available for reconstruction and we are already working to further increase our support to the Abruzzo, Lazio, Umbria and Marche regions – recalled Vigliotti -. Rebuilding is important, but even more to do it in order to avoid and prevent the damage caused by natural disasters".
