The so-called Save Debt Decree has been converted into law, the decree aimed at the payment of companies for the collection of accumulated credits towards Public Administrations.
The provision of 8 April 2013, No. 35, Official Journal 07.06.2013, coordinated with the conversion law of 6 June 2013, n. 64 concerning “Urgent provisions for the payment of overdue debts of the public administration, for the financial rebalancing of local authorities, as well as for the payment of taxes by local authorities. Provisions for the renewal of the Presidency Council of tax justice” allows the payment of 40 billion arrears to companies in twelve months starting from the middle of 2013.
A necessary maneuver, implemented in the light of the recurrent insolvencies of the Public Administrations, a defect that contributed to exacerbating the crisis experienced by a good number of small and medium enterprises.
The fundamental points
The Save Debt Decree will allow Local Bodies lacking and without liquidity to be able to initiate outstanding payments to businesses for an overall plan of 40 billion USD, a plan structured on a two-year basis so as to provide for the extinction of 20 billion of debts in the second half of 2013 and 20 billion in 2014.
The compensation of the certified credits will be valid with debts registered to the role up to 31 December 2012.
What is provided for Local Authorities
With regard to Local Authorities, payments are excluded, for a total amount of 5 billion, from the constraint of the internal stability pact while penalties are provided for those responsible who during the year will not communicate payments for at least 90% to the Treasury.
For Local Authorities in the absence of liquidity, loans for a thirty-year duration may be taken out of a Fund of 2 billion for 2013 and 2014. In the event of non-payment of the depreciation fee, for Municipalities cuts will be made on the Imu quota while for provinces on the RC car tax.
All involved local authorities will not be able to commit themselves to expenses with an amount greater than the minimum annual amount related to the commitments of the last three years or to borrow for investments, the last possible point only in case of achievement of the objectives indicated by the internal stability pact, upon presentation of relevant and certifying documentation.
What is foreseen for Regions and Autonomous Provinces
For the Regions and Autonomous Provinces, a liquidity fund was created equal to 3 billion for 2013 and 5 billion for 2014.
Also in this case, it is possible to apply for thirty-year loans. As regards the Sicily Region and the Piedmont Region, these will have to adopt a return plan for local public transport, drawing on resources from the Development and Cohesion Fund.
The State will be able to anticipate liquidity to the Regions in the context of debts to health for 5 billion in 2013 and 9 billion in 2014. The Regions will have the obligation to provide at least 90% of the amounts collected for health financing purposes to the Health Service regional.
The Ministries are required to prepare specific lists of creditors and to publish them through their electronic sites.
Payment priority will be given to companies and professionals with respect to banks and to the most long-standing credits, therefore in chronological order.