ABI, ANCI and UPI have signed an Agreement for the suspension of the principal portion of mortgages of Municipalities and Provinces for one year. Municipalities and Provinces will be able to ask banks, which will adhere to the Agreement, to suspend the principal portion of the installments of loans that expire during 2020 for one year. In this way, Municipalities and Provinces will have additional liquidity to support the higher costs resulting from the effects induced by the diffusion of COVID-19.
The Italian Banking Association, the National Association of Italian Municipalities and the Union of Provinces of Italy have, in fact, signed today the Agreement which provides, inter alia,
- the possible suspension of the payment of the principal portion of the loan installments existing due in 2020, for a suspension period of 12 months,
- that the contractually agreed economic conditions are not changed (the interest rate at which the suspension is carried out is that originally envisaged in the contract and the member banks will not apply any commission to the suspension operation),
- that the interest accrued during the suspension period is paid to the bank within the contractually agreed deadlines,
- that at the end of the suspension period, the bank extends the duration of the original amortization plan by 12 (twelve) months.
The Agreement applies to Municipalities, Provinces and other local authorities wishing to join: metropolitan cities, mountain communities, unions of municipalities and consortia between local authorities.
The Agreement provides that banks can apply more favorable measures for local authorities than those provided for in the Agreement itself.