Fiat Chrysler close to getting $7.1 billion state-backed loan

Fiat Chrysler Automobiles (FCA) is close enough to obtain the necessary authorizations to get a 6.3 billion euros ($7.1 billion) state-backed loan from Intesa Sanpaolo, an executive at the bank stated on Tuesday.

FCA’s Italian division has tapped Italy’s COVID-19 emergency financing scheme to secure a state-backed, three-year facility to support the automaker’s operations in the country along with the country’s car sector, in which about 10,000 businesses operate.

“We are waiting for the green light from the Economy Ministry, after that, from the audit court,” said Mauro Micillo, the head of Intesa’s corporate and investment banking unit. “They (the authorizations) could arrive in the coming hours.”

Intesa Sanpaolo, Italy’s biggest retail bank, has already authorized the loan pending the authorization of guarantees the government will provide on 80% of the sum through export credit agency SACE.