Guarantee fund for access to the TFS / TFR advance: operating instructions

Inps was assigned the management of the Guarantee Fund to cover the credit risk connected to the financial advances of the TFS / TFR by banks and financial intermediaries, on the basis of a specific agreement, stipulated on October 28, 2020 between the 'Institute, the Minister of Labor and Social Policies, the Minister of Economy and Finance and the Minister for Public Administration.

With the Circular number 119 of 25 October 2022 INPS provides instructions on the operation and activation, by banks and financial intermediaries, of the guarantee request for the intervention of the Fund (specifying the framework offered by Circular 131/2020); the same circular 119/2022 also provides instructions on the extinction of the credit, the subrogation and the operation of the State guarantee.

The guarantee of the Fund managed by INPS covers 80% of the total amount: the Fund has an initial endowment of 75 million euros and is further fed by the commissions paid by the lenders, equal to 0,01% of the amount of the advance.

The guarantee can be activated by the bank or by the financial intermediary in case of impossibility for the disbursing Body to reimburse the same amount of the TFS / TFR advance, once the term established for the payment of the single installment of TFS / TFR and the non-repayment, total or partial, of the loan by the disbursing body has been ascertained, according to the procedures indicated in circular 119/2022.

In the event of non-reimbursement by the Inps, once it has ascertained the existence of all the conditions for the intervention, it will pay the amount due to the person who requested the activation of the guarantee, within the limits. 80% of the amount of the TFS / TFR advance. 

The INPS communicates to the supervising Ministries every six months the amounts disbursed by the Guarantee Fund in fulfillment of the requests for intervention, as well as data, elaborations and analyzes on the operations and effectiveness of the Fund.

Guarantee fund for access to the TFS / TFR advance: operating instructions