1996-10-16

Deliberations of the CICS and Urgent Ministerial Decree - Deliberation of 16 October 1996

The Interministerial Committee for Credit and Savings issued a favorable opinion on the draft ministerial decree modifying the conditions for Mediocredito Centrale's subsidized intervention in export credits. The decree excludes operations shorter than 24 months and those involving consumer goods or semi-finished products not exclusively integrated into investment goods from eligibility. It also eliminates interest margins exceeding 2% over funding costs, aligns Italian law with international Consensus agreements by restricting currency financing, and authorizes hedging against interest rate and exchange rate risks.

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SECRETARIAT

DELIBERATION 16 October 1996

Credits related to exports. Draft ministerial decree modifying the methods, conditions, and timing of the subsidized intervention by Mediocredito Centrale.

THE INTERMINISTERIAL COMMITTEE FOR

CREDIT AND SAVINGS

Having seen Law 24 May 1977, No. 227 and subsequent modifications and additions, containing provisions on the insurance and financing of credits related to the export of goods and services, the execution of works abroad, as well as economic and financial cooperation in the international field;

Having seen in particular Article 18, which provides in the fourth paragraph that the conditions, methods, and timing of the intervention by Mediocredito Centrale in the operations referred to in the first paragraph of the same article shall be established by decree of the Minister of the Treasury, after hearing the Interministerial Committee for Credit and Savings, taking into account also:

  • the duration of the operations, the currencies in which the transactions are expressed, and the variability of the cost of funding;

Having seen the report containing the draft ministerial decree modifying the methods, conditions, and timing of the subsidized intervention by Mediocredito Centrale;

Considering that the draft decree provides in particular:

  • the exclusion of eligibility for subsidized intervention for operations with a duration of less than 24 months and for those relating to the supply of consumer goods, even durable ones, and industrial semi-finished products not intended exclusively to be integrated into investment goods;
  • the exclusion from the subsidy of expenses and commissions, as well as any interest margins exceeding 2% with respect to the cost of funding;
  • the elimination of the option to grant financing in a currency different from the contractual currency in order to align Italian legislation with international agreements (Consensus);
  • the authorization for Mediocredito Centrale to carry out hedging operations on interest rate and exchange rate risks to improve the efficiency of the management of public funds;

DELIBERES

To express a favorable opinion on the draft ministerial decree modifying the methods, conditions, and timing of the subsidized intervention by Mediocredito Centrale.

Rome, 16 October 1996

THE PRESIDENT

C.A. Ciampi