The ABI has sent a further circular to banks on loans of up to 25.000 euros 100% guaranteed (decree law n.23 of 8 April 2020), authorized by the European Commission on 14 April and whose applications have been submitted since 17 April .
The ABI indicates that the loan up to 25.000 euros expressly provides that the repayment does not begin within 24 months of disbursement and that it cannot be used to offset any pre-existing loan, even in the form of a current account overdraft: the compensation would cause the repayment to start before 24 months, making the guarantee void.
This prohibition of compensation also applies to those who use the suspension provided for by art. 56 of law decree n.18 of 17 March 2020: even in this case, the use of the new loan is prohibited to reduce an existing exposure on the current account because it would trigger a repayment before the 24-month deadline.