Current account for SIMEST Loans

To ensure expenses incurred during the initiative are eligible, applicant companies must open a current account for the loan(s) granted by SIMEST. This account must be used for disbursement of the loan and for all related inflows and outflows. The current account details (i.e. the IBAN and contact to open the account) can be indicated in the Portal.

For all products

What is the current account for SIMEST loans?

It is an ordinary current account in euro that the applicant company will take out with a bank in Italy for the loans granted by SIMEST and that will be used until the loan has been repaid. This current account must be used by the Applicant Company exclusively for all eligible expenses and by SIMEST to disburse the loan. The current account is mandatory for all loan applications submitted by the Financial Support Committee after 3 June 2021. The current account cannot be connected in any way with an equity portfolio.

N.B. If opening the account online, the account must be activated, as per the specific instructions of the reference bank (a bank transfer to the new account to activate it is usually required), in order to proceed with the disbursement.

What is the purpose of this current account?

The purpose is to guarantee a transparent relationship between the business and SIMEST, and ensure adequate traceability of the expenses incurred to develop the programme.

How does the current account work?

The Current Account must be used for all incoming and outgoing transactions concerning the loan granted. Both advance and final loan payments (as applicable) will be made only to this current account. Similarly, the expenses the business incurs must be ordered from this account, apart from specific cases. To ensure transactions are clearly identified, the number and/or type of loan and the beneficiary country must be indicated in the description of each payment, as well as the expenditure item the payment refers to (e.g. 1234/FM or FM/Kenya – expense for Trade Fair participation [state the name of the trade fair]). The purpose is to make a distinction between different loan flows that may or could be granted by SIMEST to the applicant company.

Is it possible to use an account already open, but not yet used as the SIMEST loan account?

The business can notify an unused current account held in the name of the applicant company, provided it has not been used for over six months from the date of the loan application submitted to SIMEST. The account must be an ordinary current account in euro, with the possibility of a company credit card being used for payments, which may be necessary to facilitate incurring the ordinary expenses envisaged under the specific programme.

What payment description should be indicated for expenses incurred after sending the loan application to SIMEST but before its approval?

In the payment description you should indicate the type of loan and beneficiary country, and the expenditure item the payment refers to (e.g. FM/Kenya – expenses for Trade Fair participation [state the name of the trade fair]). After the loan has been approved, transactions must always indicate the reference number, to ensure correct identification*.

What do I need to send to SIMEST?

When applying for a loan and/or before it is disbursed, the business can send the IBAN of its current account, along with a copy of the contract, from the Portal sacesimest.it. For businesses applying for more than one loan, a single current account for all the requested loans may be indicated. During reporting, the business will have to attach, via the Portal sacesimest.it, a complete copy of account transactions to its final data (account statement). For the Entry on foreign markets programme, SIMEST also may request, at its discretion, the list of bank transactions of programme expenses incurred by the current account of the local investee.

Is it possible to change an IBAN that has already been notified?

After notifying the IBAN of the current account, and receiving the first part of the loan (balance payment for loans for the Capitalisation of export firms and the trade fair system), it will not be possible to change it, unless the IBAN is changed for reasons not attributable to the business. In this case, the request to change the IBAN must be notified in time to SIMEST sending a certified email to simest@legalmail.it, forwarding the documentation showing the change in the IBAN.

Can expenses incurred before opening the current account receive funding?

In order for expenses to be eligible, they must be incurred using the current account. If a business has to incur expenses before opening this current account, these expenses cannot be recognised during reporting.

If the financed business has to incur expenses but does not have available funds in the current account, what should it do?

The business must provide the necessary funds, so that the expenses which can be funded under the loan are always incurred using the current account. The business will have to transfer funds to cover its expenditure requirements.

Is it possible to use a current account for other loans/projects for the SIMEST loan too?

No, the current account must be exclusively for the loan(s) granted by SIMEST.

Are expenses incurred using a credit card linked to the current account eligible?

Yes. Expenses incurred using a credit card linked to the current account may be eligible, if envisaged by the programme, provided the credit card statement with details of loan expenses is submitted during reporting, and from the Portal. On this regard, as it is impossible to describe the expenses incurred using a credit card, the reported amount must simply be the same as the amount indicated in the statement of the credit card used for the payment.

Are expenses incurred using a company credit card linked to the current account eligible?

Yes, only expenses that cannot be directly incurred using the current account (e.g. for board and lodging if payment of the latter is not possible by bank transfer) may be eligible, if provided for by the programme, provided the credit card statement with details of the loan expenses is submitted during reporting, and from the Portal. On this regard, as it is impossible to describe the expenses incurred using a credit card, the invoiced amount must simply be the same as the amount indicated in the statement of the credit card used for the payment.

For the products Feasibility Studies and Trade Fairs and Exhibitions

In the case of expenses for internal programme staff, how can the business document these expenses?

The amount that may be reported corresponding to the amount of the expense for internal staff (e.g. all or a part of the remuneration) may be incurred by making the payment from the business’s usual current account. On this regard, the amount of the remuneration for the initiative must be transferred from the loan current account to the company current account no later than the final reporting date, and with an adequate description of the subsidised expenditure*. During reporting, a statement of the company current account indicating the payment of remuneration must be given to SIMEST, in any case.

In the case of expenses for external programme staff, how can the business sustain the expense?

The business must incur expenses for external programme staff from the loan current account according to the procedures indicated*.

In the case of travel and accommodation expenses of staff for the Feasibility studies or Trade Fairs and Exhibitions programme, how can the business incur the expense?

The travel and accommodation expenses of programme staff must be sustained using the current account or, alternatively, a company credit card (the amount of these expenses must be transferred from the loan current account to the company current account no later than the final reporting date, and with an adequate description of the subsidised expenditure*), on condition that a statement of the company credit card indicating the expenses incurred is provided.

For the product Entry on foreign markets – Direct management

In the case of the expenses of staff of a company located abroad, how can the these expenses be documented using the loan current account?

The amount that may be reported corresponding to the amount of the expense for internal staff (e.g. remuneration) may be demonstrated by making the payment from the business’s usual current account. On this regard, the amount of the remuneration for the initiative must be transferred from the loan current account to the company current account no later than the final reporting date, and with an adequate description of the subsidised expenditure*. During reporting, a statement of the company current account indicating the payment of remuneration must be given to SIMEST, in any case. In addition, the travel and accommodation expenses of programme staff must be incurred using the loan current account or, alternatively, a company credit card, on condition that the statement of the company credit card showing the expenses incurred is provided.

For the product Entry on foreign markets – Management through the local investee

Who should open the loan current account and how should it be used?

The loan current account must be held in the name of the company applying for the loan granted by SIMEST. The local investee may sustain its own programme expenses using its company current account (not necessarily an account exclusively for the programme), indicating, in each payment description, the loan number and/or type with the beneficiary country and expense item (e.g. no. 1234/IM or IM/Kenya – January 2022 rent). In this case, during reporting, the applicant company must submit from the Portal a copy of the statement of the loan current account and a copy of the account statement of the local investee, showing the transactions for loan expenses.

*The payment description must indicate the loan number and/or type with the beneficiary country and expense item (e.g. no. 1234/IM or IM/Kenya – February Remuneration David Smith). This payment description must be indicated for all reported expenses (reporting is not required for the Capitalisation loan)

For further information, see the contract conditions in the application form and letter of confirmation.

Current account for SIMEST Loans