15 May 2020
On 13 May 2020 the Italian government approved a new Law Decree (the "Decree"), informally named "Decreto Rilancio", which provides for a number of measures aimed at relaunching the Italian economy following the first phase of the Covid-19 lockdown.
Among the measures directed at the financial system, the Italian government has revamped a State guarantee scheme in relation to debt securities issued by Italian banks as well as in relation to emergency liquidity assistance transactions, which was originally introduced by Law Decree No. 237 of 23 December 2016, converted into law by Law No. 15 of 17 February 2017 (the "2016 Decree"). Most of the features of the new State guarantee scheme are in line with those of the 2016 Decree.
The Decree is yet to be formally published on the Official Gazette and this analysis is based on the latest draft that was discussed by the Italian Council of Ministers on 13 May 2020, although no changes to the provisions of the State guarantee scheme are expected. Once it will come into force following the formal publication, the Decree will need to be converted into law within 60 days after the publication, potentially with amendments to be approved by the Italian Parliament.