More certainty with non-possessory pledges over movable assets
23 August 2021

Decree No. 114 of 25 May 2021 of the Ministry of Economy and Finance, which establishes a register for Italian non-possessory pledges, has finally been published in the Italian Official Gazette.

Non-possessory pledges widen the possibility for entrepreneurs registered in the competent companies’ register to have access to credit, as they allow them to secure their obligations through a pledge over all movable assets generally used for the exercise of their business while at the same time letting them maintain full possession of, and power of disposal over, the movable assets.

Will the new non-possessory pledge ultimately be used in the context of secured financing and debt capital markets transactions? How long still will it take to concretely set up the register and obtain full access to it?

Our Debt Capital Markets Focus Team analyses this new type of security interest and the related decree implementing the register here.