Emilia-Romagna flood emergency: initiatives to support customers
Banca Progetto is at its customers to overcome the emergency as a result of the exceptional meteorological events that occurred starting from 1 May 2023 in the territory of the provinces of Reggio-Emilia, Modena, Bologna, Ferrara, Ravenna, Forlì-Cesena and Rimini, activating the measures provided for by law.
Banca Progetto has implemented the measures envisaged by the Ordinance of the Head of the Civil Protection Department (OCDPC) of 8 May 2023, n. 992 - published on the Civil Protection Department website (https://www.protezionecivile.gov.it/it/normativa/ocdpc-n-992-dell8-maggio-2023/) and in the Official Journal no. 110 of 12 May 2023 - regarding the suspension of the payment of mortgage installments following the declaration of the state of emergency indicated above, extended to the province of Rimini by the Ordinance of the Head of the Civil Protection Department (OCDPC) of 24 May 2023, n. . 997 – published on the Civil Protection Department website (https://www.protezionecivile.gov.it/it/normativa/ocdpc-n-997-del-24-maggio-2023/) and in the Official Journal no. 129 of 5 June 2023 – and expanded by the Ordinance of the Head of the Civil Protection Department (OCDPC) of 14 June 2023, n. 1.003 - being published in the Official Gazette.
In particular, the art. 11 ("Suspension of loans"), paragraph 1, of the first Ordinance established that the aforementioned event constitutes force majeure pursuant to and for the purposes of art. 1218 of the civil code. In this regard, it is also envisaged for the holders of mortgages relating to the cleared buildings, or to the management of commercial and economic activities, including agricultural, carried out in the same buildings or in the case of agriculture carried out in landslided or flooded lands, upon presentation of self-certification of the damage suffered, the right to ask credit and banking institutions, until the aforesaid property is viable or habitable and in any case no later than the date of cessation of the state of emergency (May 4, 2024), for a suspension of installments of the same loans, choosing between:
- the suspension of the entire installment - the suspension of the capital quota only
Customers can then request the Bank to suspend payment by submitting the relevant request (see Annex 1) accompanied by self-certification pursuant to Presidential Decree 28 December 2000, no. 445, as amended (see self-certification attachment). The total suspended amount must be returned to the Bank without additional expenses and/or charges in terms of commissions or preliminary investigation costs. The maturity of the loan will be extended for a period corresponding to that of the suspension. In the event of suspension of the principal portion only, the borrower will pay the Bank, for the duration of the months of suspension, an installment of interest only calculated on the residual principal debt, at the rate and in the manner set out in the contract. In the event of suspension of the entire installment (principal + interest), the interest accrued and possibly suspended during the period, unproductive of further interest, will be divided into installments of equal amount on the subsequent installments due and will be entirely due in the event of repayment or subrogation of the loan.