Clifford Chance

New more creditor friendly rules on taking and enforcing security and credit collection in Italy

17 May 2016

On 29 April 2016, the Italian Government announced new measures in support of financings to Italian businesses, which have now been published in the Italian Official Gazette. The measures are set forth in law decree no. 59/2016 dated 3 May 2016, which came into force on 4 May 2016 (the "Decree"). The Decree must be converted into law (subject to amendments) by 2 July 2016. This briefing focuses on (1) the new rules set forth in the Decree allowing parties to existing and new credit facility agreements to agree upon the transfer of title and other rights in rem over real estate upon a payment default (this arrangement is known as "patto marciano"), and (2) the key features of a new pledge (without dispossession) over moveable assets introduced by the Decree.

In addition, the Decree contains provisions intended to reduce timing of Italian enforcement proceedings, a further step taken following the 2015 reforms.

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