UniCredit sets out 8 billion euros in relief measures for customers hit by surging prices

ITALY’S second-biggest bank UniCredit on Monday (Sep 5) unveiled a set of measures worth up to 8 billion euros (S$11.1 billion) in total to ease the pain of firms and households hit by record energy costs and a wider price surge.

“Italian businesses and families, grappling with the staggering increase in energy and raw material costs, are facing an economic crisis with uncertain implications and timing,” the bank said in a note.

UniCredit said it would offer companies 5 billion euros (US$5 billion) in new loans with an up to 3-year maturity and a grace period of up to 6 months to help them pay their energy bills.

Another 3 billion euros will be made available through payment suspensions and other measures for holders of credit cards and mortgage loans.

Companies that have not tapped government guarantees on bank debt the government made available during the pandemic can request until Dec 31 a 12-month holiday on their mortgages, UniCredit said.

An up to 12-month suspension for capital reimbursement and the possibility to tweak the repayment plan will be also offered on 400,000 house mortgages.

Some 1.4 million credit card holders will have the chance to postpone by up to 6 months with zero rates and fees their payments from Oct 1 to the end of the year. REUTERS