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IILA holds seminar on joint-venture credit facilitation

For doing business in Latin America

10 February, 19:15
IILA holds seminar on joint-venture credit facilitation (ANSA) - Rome, February 10 - A seminar held on Monday at the Italo-Latin American Institute (IILA) focused on credit facilitation for Italian businesses interested in joint ventures in Latin America. Over seventy Italian enterprises and many representatives from Latin American embassies attended. The event aimed to inform the public about the application of Article 7, Law n.49/1987. It was organized by IILA and the Directorate General for Development Cooperation of the Italian Foreign Ministry. The seminar mainly targeted sectors connected with industry, agriculture, farming, fisheries and byproducts processing; crafts; local utilities and services (energy, communication, water, transport, waste management), microfinance (services for micro-enterprises, local trade, fair trade, sustainable tourism) and the protection and fostering of cultural and environmental resources. The credit facilitation for joint ventures is applicable in Bolivia, Cuba, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Nicaragua and Paraguay.

Opening remarks were made by IILA secretary general Giorgio Malfatti di Monte Tretto, who underscored that the initiative was in line with the institute's recent shift towards fostering not only cultural relations but also economic ones between Italy and the member states and embassies in question. This was echoed by Jose Luis Rhi-Sausi, IILA socio-economic secretary who organized the seminar. Director-General for Development Cooperation Giampaolo Cantini underscored the improvements in credit facilitation for companies brought in by the Italian government.

Legislators, Cantini noted, had ''decided to adapt these measures to local contexts while keeping in mind the intrinsic ethical value in the initiatives, introducing greater complementarity with other means of cooperation and with internationalization instruments available from other bodies.'' He pointed out that the ''maximum level of the loan has been doubled to ten million euros''.

Article 7 of Law n.49/1987 is applicable to new joint ventures or existing enterprises with mixed ownership. Local enterprises must account for at least 25% of the company capital, and the credit can finance up to 70% of the capital underwritten by the Italian enterprise in the joint ventures for a maximum of 10 million euros. Interest is at 0.59% and must be paid back within 10 years, with a maximum grace period of five years. Sixty-eight operations have been conducted so far and 93,000 euros in credit has been granted.