EUR 1bn for reconstruction after Italy earthquake
To provide the funds, MEF is borrowing from the European Investment Bank (EIB), which has more advantageous interest rates.
The EIB will, in turn, transfer the funds to Cassa Depositi e Prestiti (CDP) which through the banking system will onlend them to families and businesses.
EIB Vice-President Dario Scannapieco and the CEO of CDP Fabio Gallia signed the finance contract making the funds available immediately for private reconstruction.
The agreement was signed at the Ministry of Economy and Finance in the presence of Minister Pier Carlo Padoan and the Government’s Special Commissioner for Reconstruction following the 2016 earthquake, Vasco Errani, who also signed a Service Agreement with the EIB in order to ensure that the funds are actually deployed for reconstruction.
The funds will be used to cover the cost of rehabilitation and to ensure that the damaged homes, businesses and manufacturing facilities (e.g. warehouses, sheds, capital equipment, stocks, etc.) comply with safety regulations.
The EUR 1bn that the EIB and CDP have made available today is part of the overall figure of EUR 5bn of financing operations already approved by the Board of Directors of both institutions for post-quake reconstruction in central Italy.
Specifically, CDP allocated EUR 4bn in support of the private sector (families and businesses), of which EUR 1bn is being provided by the EIB via today's operation.
The EIB also agreed to lend a further EUR 1bn directly to MEF for the reconstruction of public buildings (schools, hospitals, courthouses, administrative offices, etc.) and that loan will be signed shortly. ■