Italy Puts 1.2 Billion Euros of EU Cash Into Small Companies
Italy will spend 1.2 billion euro ($1.4 billion) of European Union cash on a fund aimed at helping the country’s small and medium-sized companies modernize and invest.
The money, distributed through state-company Simest, will support such businesses with digital and green transition investments, participation in fairs and exhibitions, and development of e-commerce in foreign countries, according to a press release Thursday.
Italy is the biggest beneficiary of the EU’s Recovery Fund, with about 200 billion euros in grants and loans coming its way in the next few years. It received a first tranche of 24.9 billion euros over the summer.
As much as a quarter of money will be non-repayable, with the rest granted as a loan at a subsidized rate -- currently 0.055% per annum. For companies based in the South, the non-repayable part rises to 40%, Simest said.
Prime Minister Mario Draghi is investing both EU and state resources to try to boost the economy of Southern Italy in a more permanent way. About 40% of EU recovery fund money will go to the South.
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