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Friday, 03 July 2020
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The News and Media Division of The Insight Partners
Wednesday, 24 Jun 2020 05:00 pm

Italy approves guarantees for $7.1 billion loan to Fiat Chrysler: source

Italy has approved a decree offering state guarantees for a 6.3-billion euro ($7.1 billion) loan to Fiat Chrysler’s Italian unit, a source said, paving the way for the largest crisis loan to a European carmaker.

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The source said Italy’s audit court had signed off on the decree, in a final step of what had been a lengthy and contested process to get the loan approved. The court’s approval follows an earlier endorsement by the economy ministry.

“The audit court authorized the decree,” said a source close to the matter, asking not to be named because of its sensitivity.

FCA’s Italian division has tapped Rome’s COVID-19 emergency financing schemes to secure a state-backed, three-year facility to help the group’s operations in the country, as well as Italy’s car sector in which about 10,000 businesses operate, weather the crisis triggered by the coronavirus emergency.

The loan will be disbursed by Italy’s biggest retail bank Intesa Sanpaolo, which has already authorised it pending the approval of guarantees the government will provide on 80% of the sum through export credit agency SACE.

The request for state support has sparked controversy because FCA is working to merge with French rival PSA and the holding for the Italian-American carmaker is registered in the Netherlands. FCA’s global brands include Fiat, Jeep, Dodge and Maserati.

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Tags Fiat Chrysler Italy European carmaker Loan COID-19 crisis Health emergency

Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


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