Italy Studies Tax Relief, Financial Support for Virus-Hit Areas

(Bloomberg) --

The Italian government is studying emergency measures to support companies and families affected by the coronavirus outbreak in the country’s northern regions.

Possible steps include suspending local tax payments and delaying mortgage payments, according to a draft decree seen by Bloomberg. The latter action would require an agreement with the Italian Banking Association, according to the document.

Italy was already on the brink of recession after an 0.3 percentage point contraction in the fourth quarter. Bond yields spiked and equities slumped Monday after the country emerged as Europe’s most-affected nation, with over 200 cases reported.

Small and medium-size businesses in affected areas will have preferential access to a state relief fund. Some companies will also receive financial support in order to restart their business.

In the next few weeks Italy’s government may all pass more structural measures, including financial support to the sectors mostly hit by the economic impact of the virus, such as tourism and fashion, according to Italian paper Il Messaggero.

To contact the reporters on this story: Flavia Rotondi in Rome at rotondi@bloomberg.net;Alberto Brambilla in Rome at abrambilla8@bloomberg.net

To contact the editors responsible for this story: Alessandro Speciale at aspeciale@bloomberg.net, Ross Larsen

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