Italy Faces Uncertainty Over COVID Business Loan Program
- Italy guaranteed 189B euros in loans to support businesses during COVID pandemic and energy crisis
- Uncertainty over how to handle restructuring when a business with state-backed loans is in distress
- Lack of clear legal framework on state-backed loans slows restructuring efforts
- Guarantee payments are taking time, could slow further as more tapped
- Court rulings have voided some state guarantees, adding uncertainty
