Fiat Chrysler Automobiles (FCA) is in talks with Italian lender Intesa Sanpaolo over a 6.3 billion euro ($6.8 billion) state-guaranteed loan to help the automaker weather the coronavirus crisis, a source knowledgeable with the matter stated on Friday.
The loan, which is part of emergency liquidity measures the Italian government is making available to the nation’s businesses, must be approved by Intesa Sanpaolo’s board, the source stated.
Once approved by the lender, the request will be checked by the country’s export credit agency SACE, through which the state provides its guarantee, and then by the Treasury for a final green light, the source stated.
FCA and Intesa Sanpaolo are yet to comment.
News that FCA was finding out a state-backed loan was first reported by MF daily on Friday.
During April, the Italian government had approved on emergency decree that will offer over 400 billion euros ($432 billion) worth of liquidity and bank loans to companies impacted by the ongoing coronavirus crisis.
