Guarantee Fund in Italy Brings Maximum Business Coverage to 5 Million

The maximum amount per single company that can be guaranteed by the Guarantee Fund for SMEs increases to 5 million, doubling compared to the current limit, as provided for by the reform of the Fund in force from January, 1st, 2024.

To this end, Mediocredito Centrale, as Fund Manager, in agreement with the Ministry of Business and Made in Italy, will make operational starting from February 29th, the method of the so-called “exempt premiums” for the calculation of the GSE (Gross Subsidy Equivalent), necessary for in order to verify compliance with the limits established by European legislation on state aid.

The current GSE quantification system, by express provision of the European Commission, can only be used for SMEs and for guaranteed amounts up to 2.5 million. A new method is being defined and will have to be approved by the European Commission to allow SMEs, Mid Caps and professionals to benefit from the new 5 million limit.

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The Guarantee Fund’s evaluation model

While awaiting this approval, it will be possible, only for SMEs and professionals, to use the new method which provides for the application of an annual premium defined on the basis of the rating class of the beneficiary determined by the Guarantee Fund’s evaluation model. If it is not possible to determine the rating class, the annual premium is determined through a pre-established fixed rate.

The ESL will be determined by the difference between the current value of the annual premiums and the amount of any “one-off” fee paid to the Guarantee Fund for admission to the guarantee. The new method will be applied only when the total guaranteed amount per individual beneficiary, adding the new operation to those already in place, is between 2.5 and 5 million euros.

“After intense work together with the Ministry of Business and Made in Italy – commented Francesco Minotti , CEO of Mediocredito Centrale – the solution was found to immediately allow coverage of up to 5 million in guarantee, resolving the problem of calculating the GSE, pending the new method that will be identified by the European Commission”.

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First published in LA STAMPA. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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