CICR and Urgent DM Resolutions - Resolution of 3 March 1994

Rome, [Date] Ministry of the Treasury Via XX Settembre, 97

Interministerial Committee for Credit and Savings

SECRETARIAT

RESOLUTION OF 3 MARCH 1994

Revision of the System for Determining the Reference Rate for Subsidized Credit Operations.

THE INTERMINISTERIAL COMMITTEE FOR CREDIT AND SAVINGS

Having regard to Legislative Decree No. 385 of 1 September 1993, containing the Consolidated Act of laws on banking and credit matters;

Having regard to its Resolution of 4 February 1977, and subsequent amendments and additions, concerning the reference rates to be applied to subsidized credit operations, adopted pursuant to Article 20 of Presidential Decree No. 902 of 9 November 1976;

Taking into account that the determination of the reference rate for subsidized credit operations in the industrial sector and other sectors is based on the cost of bond funding incurred by the banks providing the financing, to which a commission is added to cover the costs associated with the intermediation activities carried out by them;

Considering that the expansion of collection instruments and the process of operational and temporal despecialization induced by the aforementioned Legislative Decree 385/1993 make the reference to the cost of bond funding less significant and usable;

Considering that in certain sectors (agricultural and commercial fishing credit, hospitality and tourism,

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Rome, [Date] Ministry of the Treasury Via XX Settembre, 97

Interministerial Committee for Credit and Savings

2

SECRETARIAT

and crafts) indicators of market interest rate levels are already used to identify reference rates;

Recognizing the need, in light of the described regulatory evolution, to anchor the determination of the reference rate for subsidized credit operations, in sectors where it is tied to the cost of bond funding, to indicators of market interest rate levels, as they represent, in the changed context, the cost of bank funding;

R E S O L U T I O N

1. For the purpose of determining the reference rate for subsidized credit operations in the industrial sector, parameters representative of the level of market interest rates shall be used.

2. This criterion for determining the reference rate shall also be extended to other subsidized credit sectors where the rate itself is based on the funding cost of the former special credit institutions.

3. By decree of the Minister of the Treasury, upon proposal by the Bank of Italy, the parameters to be adopted for determining the reference rates and the related implementation procedures, as well as any necessary parameter modifications, shall be identified.

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Rome, [Date] Ministry of the Treasury Via XX Settembre, 97

Interministerial Committee for Credit and Savings

3

SECRETARIAT

necessary.

4. It remains established that the procedures for determining the commission recognized to banks for ancillary costs are set by the Minister of the Treasury, after consulting the Bank of Italy.

This resolution shall be published in the Official Gazette of the Italian Republic.

Rome, 3 March 1994

The President P. Barucci