The initiative will involve 6,600 local authorities who will be able to renegotiate up to 130,000 loans for a total outstanding debt of around €24 billion. This is the aim of the new loan renegotiation plan launched by CDP to support municipalities, provinces and metropolitan cities. An operation that, by restructuring loan repayment plans, will free up significant funds that can be used to generate a significant positive impact on the area.
During the application period, which runs from 6 to 26 April 2023, CDP will make the list of original loans available with the related renegotiation terms and conditions in the Public Administration section on the Cassa Depositi e Prestiti website.
The operating procedures for renegotiation by local authorities are outlined in Circular No. 1303. In particular, from 30 June 2023 to 31 December 2024, municipalities, provinces, and metropolitan cities can restructure their loan repayment plans by paying principal amounts equal to 0.25% of the renegotiated residual debt together with the related interest payments. From 30 June 2025 and until the maturity of the loans, the six-monthly amortisation instalments, including principal and interest, will be fixed. In addition, only for loans with original maturity dates after 31 December 2036, it will be possible to choose whether to keep the maturity unchanged after renegotiation or to reduce it by three years. The post renegotiation interest rate will also be fixed for loans currently calculated at a variable rate.
For the first time, the application process can be finalised in an entirely digital way - from the preliminary investigation to contractual stage - significantly speeding up and simplifying the entire process.
The operation will allow local authorities to free up funds to be used immediately to support services in the area for the benefit of families and businesses, but also to deal with emergencies related to the current macro-economic and geopolitical situation, which has led to significant increases in energy and raw material costs.