The so called “Banks Decree” Decree (Law Decree no. 59/2016, hereinafter the “Decree”), published on the Official Gazette and converted into Law no. 199/2016, has recently entered into force.
The main purpose of the Decree is to grant a partial reimbursement to investors of few local banks that were resolved in November 2015. However, the Decree has also introduced additional innovations which represent a further significant step in the Government’s effort of streamlining the credit recovery activities and implementing a more creditor-friendly environment.
In particular, the Decree has introduced, inter alia, four relevant amendments:
- a new type of pledge, without dispossession of the debtor, which should constitute the Italian floating charge;
- lenders and borrowers (who are companies or entrepreneurs) are allowed to enter into, at the time of the origination of the mortgage loan or thereafter, a repossession agreement;
- a new electronic register, held by the Ministry of Justice, where all the real estate enforcement proceedings, insolvency and pre-insolvency procedures will have to be filed, and
- the enforcement and insolvency procedures are now subject to changes in order to expedite them.
Creditors, especially foreign investors, will appreciate these amendments as a sign that the Italian government is continuing to promote creditor-friendly bankruptcy and restructuring to encourage foreign investment.