The Italian government is expected to guarantee a EUR2 billion (USD2.1 billion) credit line for Telecom Italia (TIM) to boost the telco’s turnaround efforts. A report from Reuters cites three unnamed sources who say the loan agreement has been reduced from the EUR3 billion which TIM initially requested due to a drop in its expected financing needs.
Under a temporary easing in EU rules on state aid, Italy’s credit export agency SACE is able to provide guarantees covering up to 80% of loans granted to large companies facing difficulties due to the COVID-19 pandemic. The loan will be provided by a group of banks comprising Italy’s UniCredit, BNP Paribas and Credit Agricole of France, and Spain’s Santander.
TIM is currently working on a plan to separate its retail and networks businesses and merge the networks unit with wholesale provider Open Fiber. The Italian government owns around 10% of TIM and 60% of Open Fiber.