World Business Watch: Italy Set To Launch Funds For The Firms Affected By The Pandemic
Italy announces a launch of funds for the organizations in the country that were worst affected by the pandemic.
After the coronavirus pandemic hit the world, it brought almost all of the countries and their economies to their knees. A lot of businesses, along with the individuals, were badly affected. Italy, which was one of the worst affected countries, has recently announced to launch a fund for the firms that were affected due to the virus. Read on to know more.
In the year 2020, due to the COVID-19 pandemic, the economy of Italy had shrunk by 8.9%. To cover up the losses and to get the economy back up, the government of Italy announced the launch of funds to help the firms and organizations in their country that were the worst affected by the virus. Reportedly, this fund is amounted to about $47.8 billion and will be launched in March itself.
Reports say that a special purpose vehicle will be financed by the treasury of Italy, via specifically issued sovereign bonds and managed by state lenders and equity investors. The treasury will give the bonds to CDP, which can use them as collateral to release liquidity in the market. The decision, when announced in the Italian parliament, was well-received and applauded by the members present.
Reportedly, Rome will issue up to 40 billion Euros of sovereign bonds in several branches, increasing the public debt pile, which already equalled 155.6% of the national output of Italy, by the end of the year 2020. However, the restrain on businesses will continue to control the further spread of the coronavirus. Italy also might impose a nation-wide lockdown on the Easter weekend, to prevent public gatherings and the further spread of the virus.
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