Loan guarantees from the Usury Prevention Fund

Image result for loan guaranteeThe Ministry of Economy and Finance has allocated a good 27 million euro to facilitate loans to households and businesses, especially those resident in the territories affected by the earthquakes in recent years. The measure will allow the possibility of access to loans from the banking system to be encouraged thanks to the State guarantee, avoiding becoming a prey for usurers.

The measure was announced by the MEF with the Press Release n. 215 of 29/12/2017 and the amount was disbursed by the Prevention Fund, established by Law 108/1996 by the Department of the Treasury, to Condifi (about 70 percent of the total) and to Associations / Foundations of the Third Sector (the remaining 30 percent). Confidi has set up a Risk Fund to support companies in financial difficulty while creating agreements with some banks that are sensitive to the problem. The complete list of beneficiaries has been published on the page of the Beneficiaries of the Treasury Department Wear Funds .

A measure like this proves, also for 2018, a real opportunity. In particular, it succeeds in favoring the granting of loans while preventing financial exclusion to all “weak subjects” exposed to the risk of usury. The amount of the usury prevention fund is different from year to year, as it is fueled by administrative anti-money laundering and currency sanctions. The MEF, since 1998, has provided over 600 million euro for the granting of guarantees for over 80 thousand loans, which amount to a total amount of almost 2 billion euro.

As already happened in the last years, the contributions have been divided considering the combinations of indicators that detect the wear risk index of the specific territory and the efficiency of the capacity to use the funds. An additional contribution has been recognized to all the bodies operating in the areas affected by the earthquakes in 2016 and 2017.