On 30 April 2019, the Law Decree No. 34/2019 bearing urgent measures of economic growth and for resolving specific crisis situations, the so-called "Decreto Crescita" (the Decree) has been published on the Official Gazette, amending, among the others, Law No. 130 of 30 April 1999 (the Italian Securitisation Law).
In particular, the Decree - which entered into force on 1 May 2019, and still to be converted into law (possibly with amendments) - continued the reform process recently initiated in the field of securitisations involving non-performing loans or proceeds arising from the ownership of real estates and registered movables assets, providing for further measures aimed at:
- Providing the necessary clarifications in relation to a new structure of securitisation having as underlying assets: real estate assets, registered movables assets and real rights (diritti reali) or personal rights (diritti personali) over such assets
- Facilitating the transfer of receivables classified as unlikely to pay (UTP)
- Introducing new provisions and clarifications on the treatment of so-called "ReoCo", allowing the establishment of more backup vehicle companies (società veicolo di appoggio) (the Backup SPVs) for the activities relating to the acquisition, management and valuation of assets, carried out in the exclusive interest of the securitisation transaction
- Introduce specific amendments to tax provisions of Italian Securitisation Law aimed at reducing the tax burden of the Backup SPVs (including the ReoCo) in the process of selling off the real estate assets backing the receivables and at reducing the indirect tax burden of transfer of real estate assets in favour and made by such Backup SPVs, and
- Expanding the tools that can be used by the securitisation companies in order to provide support to the assigned debtors in the context of restructuring transactions.
For a more detailed description and an analyses of such provisions (together with a consolidated version of the Italian Securitisation Law), please refer to our brochure here available.