Italy close to announcing Fiat Chrysler’s $7 billion bailout bill



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Italy close to announcing Fiat Chrysler’s $7 billion bailout bill

Italy, the third-largest economy of the bloc by nominal GDP (Gross Domestic Product) had been nearing an approval of €6.3 billion in bailout package to finance the fiscally embattled London-based Italian-American carmaker Fiat Chrysler, at least two sources familiar with the subject-matter had unveiled on Sunday on condition of anonymity as the sources were not authorized to speak over the issue on public.

In point of fact, latest progress over the London-based European carmaker’s bailout fund aimed at seeing through the pandemic-driven fiscal drawdowns, what analysts said could be the largest crisis debt for a European carmaker thus far, was brought into the light as the FCA’s Italian wing has long been tapping into Rome’s pandemic emergency financing schemes to snatch a state-backed, three-year long fiscal backing to support the automotive group’s operation in the Italian car sector, which had about 10,000 businesses operational before the onset of the pandemic outbreak.

Italy’s largest retail bank Intesa Sanpaolo to disburse the FCA debts

Apart from that, an Italian national newspaper, Il Sole 24 Ore daily had also quoted two of the sources as saying that the €6.3 billion in debts would be disbursed by the Italy’s largest retail lender Intesa Sanpaolo, that earlier had authorized a pending of approval of the Government guarantees, 80 per cent of which was scheduled to be paid off through the export credit agency SACE.

Nonetheless, the sources had confirmed that the Italian Government would soon send a go-ahead signal to the bailout package following discussions to finalize the terms. However, although neither FCA nor Italy’s Treasury Department had commented over the issue, the Il Sole 24 Ore daily newspaper said at its Sunday report that the final terms of the FCA debts agreement could witness a slight hike in the company’s planned investment in the country of €5 billion to €5.2 billion, adding that the crisis debts in Italy are subject to numerous conditions including a temporary cancellation of dividend payments.

Nevertheless, followed by FCA’s planned merger with the French carmaker Groupe PSA, the Italian-American carmaker would be able to payoff €5 billion in dividends this year, suggested analysts.