BPM, EUR600 million in loans assisted by guarantee fund

On April 17, 2024, Banco BPM SpA and Mediocredito Centrale, acting as the Manager of the Italian Small and Medium Enterprises (SME) Guarantee Fund on behalf of the Italian Ministry of Made in Italy, announced the launch of two new operations involving public guarantees for loan portfolios. The news was first reported on marketscreener.com.

The operations were initiated following the approval of the admission resolutions by the Fund. According to the report, Banco BPM began the placement process for two tranches of new loan portfolios, collectively totaling €600 million, which will be supported by the guarantees from the SME Guarantee Fund.

The SME Guarantee Fund is a government initiative aimed at providing financial assistance to small and medium-sized enterprises (SMEs) in Italy. The fund offers guarantees to banks and other financial institutions to encourage them to provide loans to eligible businesses that might not otherwise qualify due to credit risk concerns. By sharing the risk with the government, banks are more likely to extend credit to these businesses, thereby promoting economic growth and job creation.

The specific details regarding the loan portfolios, such as the number of loans, industries involved, and borrower profiles, were not disclosed in the available information. However, it is mentioned that these operations mark the continuation of the Italian government's efforts to support Italian businesses during challenging economic conditions.

The placement process for these loan portfolios is underway, and interested financial institutions can apply for participation in the program. The involvement of Banco BPM and Mediocredito Centrale as the managing agents for the SME Guarantee Fund underscores their commitment to supporting Italian businesses and facilitating access to financing opportunities.

In summary, Banco BPM and Mediocredito Centrale, acting on behalf of the Italian Ministry of Made in Italy, have launched two new operations involving public guarantees for loan portfolios worth €600 million to support Italian SMEs. The placement process for these loan portfolios is ongoing, with interested financial institutions invited to apply for participation. The SME Guarantee Fund aims to encourage banks to extend credit to businesses that might not otherwise qualify due to credit risk concerns, thereby promoting economic growth and job creation in Italy.