Italy’s Cassa Depositi e Prestiti (CDP), a joint-stock company under public control having the mission to finance the development of the country, has reduced the interest rate applicable to loans to banks in the framework of the 8bn fund dedicated to support small and medium enterprises (SMEs).
In particular, CDP has reduced the differential on six-month Euribor by 15 basis points, bringing the new bands to 60bp and 80 bp.
According to an official statement, the decision, which will take effect from October, was taken as a result of general improvement of market conditions. In recent weeks, there was a significant and progressive reduction of the credit risk perception in both banking and financial system, which led to narrow the spreads on government and bank bonds.
CDP hopes that the reduction in lending rates could promote a major use of the fund that today, after a few weeks of full operation, shows a high degree of accession by the banking system, and result in an advantage for the final user, small and medium enterprises.