June 4, 2020 / 3:28 PM / a month ago

Italy minister says FCA must respect state backed loan conditions

ROME, June 4 (Reuters) - Fiat Chrysler will file regular reports on its use of a multi-billion euro state-backed loan and will face sanctions if it does not respect commitments attached to the package, Italian Economy Minister Roberto Gualtieri said on Thursday.

The 6.3 billion euro ($7.15 billion) loan to the car maker will be financed by Intesa Sanpaolo and will be 80% guaranteed by the state through credit export agency SACE.

Speaking in a parliamentary committee hearing, Gualtieri said that once approved, the loan will require FCA to regularly report the use of the funds and that penalties for the group could be as much as the full reimbursement of the loan.

A government official close to the matter said on Thursday the Treasury would authorise state guarantees for the loan “in the next few days”.

$1 = 0.8813 euros Reporting by Giuseppe Fonte, writing by Giulia Segreti

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