Fiat-Chrysler-state-backed loans, the CEO says is of crucial importance for Italy’s economy-Intesa-

MILAN (Reuters) – A 6.3 billion Euro ($7 billion) state-backed loan-for-Fiat-Chrysler (FCA) (FCHA.MI), financed by Intesa Sanpaolo (ISP.MIit ), is said to be of crucial importance for Italy’s economy, the head of the country’s largest retail bank,.

The government-guaranteed loans drawn criticism in Italy, because the case of the FCA, which moved its legal headquarters in the Netherlands, and is working on a merger with French carmaker PSAPEUP.PA).

Italy is said to be the guarantee to help 80% of the loans by a credit export Agency SACE, under emergency liquidity package in the agreement, the country’s weather, the corona virus crisis

Speaking to Corriere TV, Intesa’s CEO Carlo Messina said the loan was necessary in order to protect a sector that has a share of 6% of the Italian economic performance, because under the terms of the loan agreement, FCA’s the money, employees, and suppliers, as well as financing possibilities for investments in the country.

“With this transaction, we support an important sector of the economy, its suppliers, and employment,” Messina said.

“It is a key-board (or the efforts to protect the economy in the current phase, and if we do not have the support of sectors, which are vital to the GDP, such as the automotive and construction … instead of a 10% GDP contraction, we have gone 15% back,” he said.

Messina said, to ensure that the conditions for the loans were the money would be paid through the dedicated current accounts, solely to pay the employees, the suppliers and the financing of the investments.