Conference and Growth Law Decree: 3 concrete cues

Last week’s conference on the Reoco and on recent regulatory updates was an opportunity for an open discussion on the subject between market players.

The speakers provided a complete description of the current situation, starting from a market overview up to describing the most particular cases in detail.

The choice of speakers was not accidental, we chose those who work directly in the field and with whom we can talk about practical applications of the legislation.

The result was an interesting panel discussion, from which many points for reflection emerged.

We mention three:

1. Tax assets

It was certainly the most debated topic. All the speakers agreed that more clarity is needed, especially with reference to the application of VAT and to situations in which the attribution of tax assets  is transversal on several operations not connected to each other (e.g. pro-rata);

2. Asset segregation

Although it was clear to everyone that the legislator introduced the segregation of assets for the assets acquired by the Reoco-SVA, some operational mechanisms remain to be defined. For example, how to assign an asset or an accounting item to a specific SPV sector, or how to demonstrate segregation to third- party creditors of the vehicle;

3. Applicability of tax benefits in extreme cases

We asked ourselves whether the application of the standard tout court will be reviewed in the future, given the fact that now the benefits are provided regardless of the amount of credit and the incidence of incidental expenses (capex).

On our side, we have always believed that it is essential to have a Reoco in the service of mortgage credit management operations, and we believe that following regulatory changes there will be more awareness and greater demand for our services.

We wish to thank all those who have made this conference possible, with special mention to those present who have actively participated in the discussion and contributed to the success of the event.

Emanuele Grassi

GMA deals with NPL mortgage loans, property management and development to guarantee loans and securitization transactions. Contact us.