- The resources will go towards the reconstruction and repair of private residential and commercial buildings damaged by the earthquakes of 2016 and 2017 in the regions of Abruzzo, Lazio, Marche and Umbria.
- This brings EIB loans granted via CDP to support families and businesses in the region to €1.75 billion, with a further €1 billion provided to MEF for public infrastructure.
- The monitoring and reporting on the projects being funded is continuing in order to speed up the reconstruction work, paying particular attention to environmental, social and governance objectives.
The European Investment Bank (EIB) and Cassa Depositi e Prestiti (CDP) are expanding their commitment in support of the recovery and safety of the Italian regions of Abruzzo, Lazio, Marche and Umbria struck by the 2016 and 2017 earthquakes. A new €500 million loan was agreed in September 2022 to support the reconstruction of residential and commercial buildings that were destroyed or seriously damaged by the earthquakes that struck central Italy. The best interest rate terms available on international markets mean that the resources provided by the EIB to CDP will enable the Italian government to make substantial financial savings over the 25-year financing period.
Against this backdrop, EIB Vice-President Gelsomina Vigliotti and Extraordinary Government Commissioner for reconstruction of the Abruzzo, Lazio, Marche and Umbria regions Giovanni Legnini attended an event in Camerino (Macerata), one of the areas of Marche worst-hit by the earthquake, today to sign an agreement to guarantee monitoring and reporting on the projects supported by the EIB, paying particular attention to environmental sustainability. The agreement will also enable the resources provided by the EIB and CDP to be quickly used to support private reconstruction, helping to make significant improvements in the energy efficiency and seismic safety of new buildings, essential factors for balanced, sustainable growth in the areas concerned.
The resources delivered by CDP for private reconstruction are intended for families and businesses hit by the earthquake, through low-interest loans delivered by approved banks based on the progress of the reconstruction work accepted for the support funds. In particular, the repayment costs of the loans are met by the government, through a mechanism that assigns a right to a tax credit to the beneficiaries, to be transferred to the approved banks, which these will use to cover their own tax debts. The amount of the tax credit is equal to the instalments owed (principal and interest).
The €500 million forms the first tranche of a total amount of funding of €750 million approved by the EU bank's board of directors for the reconstruction of private buildings and production operations in central Italy, which comes in addition to the €1 billion provided by the EIB via CDP in June 2017. The resources are included in the Central Italy Earthquake Reconstruction Credits launched by CDP at the end of 2016. A further €1 billion was then allocated by the EIB to the MEF for rebuilding schools, hospitals, courtrooms and administrative offices, completed in March 2018. This means that overall, the EIB will provide €2.75 billion for public and private rebuilding projects in the regions hit by the earthquake.
“My thanks to the EIB and CDP for their strong, positive commitment to finance the reconstruction of central Italy,” said Extraordinary Commissioner Giovanni Legnini. “The new loan is a sign of renewed confidence in this difficult process, which is finally moving forward at speed. The resources provided by the government are sufficient, all the more so as the funding, in this case, comes from leading international financial institutions, reducing the burden on public finances.”
“The agreement signed today here in Camerino demonstrates the closeness of the EIB to the regions hit by the earthquakes of 2016 and 2017. As the EU bank, it is our absolute priority to finance the reconstruction of public and private buildings in the areas concerned, helping not just to repopulate these regions, but also to support the relaunch of the economy,” added EIB Vice-President Gelsomina Vigliotti. “Since 2016, the EIB has provided €2.75 billion for reconstruction, and we already working to further increase our support for the Abruzzo, Lazio, Umbria and Marche regions. Rebuilding is important, but even more is it important to do it in such a way as to avoid and prevent damage caused by natural disasters.”
“We are proud to continue supporting reconstruction in the areas of central Italy that were hit so hard by the earthquakes of 2016 and 2017. Together with the EIB and the extraordinary commissioner, we are aiming to speed up a return to normality for these places and their residents, paying special attention to the quality of the homes and production sites, in terms both of energy efficiency and seismic safety. These are all vital factors in encouraging long-term, sustainable growth in the regions involved. Moreover, with this operation, CDP is confirming its own role as facilitator in access to EU resources and opportunities, to contribute to sustainable development in Italy,” said CDP CEO and General Manager Dario Scannapieco.
Background information
The European Investment Bank (EIB) finances projects in four priority areas: infrastructure, innovation, climate and environment, and small and medium-sized enterprises (SMEs). Between 2019 and 2020, the EIB Group provided €23 billion in financing for projects in Italy.
Cassa Depositi e Prestiti is the national promotional institution that has supported the Italian economy since 1850. It is committed to accelerating the industrial and infrastructural development of the country in order to contribute to its economic and social growth. CDP’s core activity promotes the sustainable development of the regions as well as the growth and innovation of Italian companies, including internationally. It partners with local authorities, providing funding and advisory activities to build infrastructure and improve public utility services. It is also active in the area of international cooperation to implement projects in developing countries and emerging markets. Cassa Depositi e Prestiti is financed from entirely private resources via passbook savings accounts and postal savings bonds and through issues on the national and international financial markets.
