Liquidity Advance: Results of the 2019 edition

Liquidity Advance: Results of the 2019 edition

363 participating local authorities, about 900 million euros of resources transferred, about 77 thousand invoices paid with a reduction of 21 days in payment time: these are the numbers from the Liquidity Advance 2019, to accelerate payments to creditors, for the benefit of the country.

After last year's success, CDP renewed its support for local authorities with the launch of Liquidity Advance 2020, enabling local authorities to advance payments to suppliers accrued as of December 31, 2019.

Liquidity Advance provides an immediate and effective response for all involved parties: companies, the central budget and public authorities, generating a positive impact on the economic fabric and local communities.

How does it work?

Within seven days of the request, CDP credits individual institutions a payment in one lump sum, with the obligation to pay creditor companies within 15 days of receiving the funds - 30 days for national health service debts.

Once the resources have been paid, a virtuous mechanism is generated for the country and the manufacturing fabric: companies will receive their credit settlement from the institutions without having to incur any ancillary costs, the central budget will not be impacted on by public finance balances and the institutions will enjoy a variable interest rate, currently equal to 0.475%, lower than that envisaged by the 2011/7/EU directive (ECB benchmark rate of 8%).

The success of the initiative in 2019 is a testament to the importance of promoting innovative tools, able to offer concrete support to local authorities: With the new launch of Liquidity Advance, CDP renews its commitment to the growth of the country.