The new circular from Cassa Depositi e Prestiti opens a strategic window to reduce the burden of debt and free up resources for the benefit of the territories: here are the terms intended for local authorities for the renegotiation of 2026 mortgages.
2026 opens with a significant opportunity for Italian local authorities struggling with the burden of debt accumulated over the years. There add n. 199/2025which constitutes the Budget law for 2026in fact introduces measures aimed at lightening the financial burdens of Municipalities, Provinces and metropolitan cities, allowing a new season of renegotiation of loans.
In particular, article 1, paragraphs 678 and 679, takes up and strengthens tools already tested in previous years. On the one hand, the possibility of renegotiating mortgages also in 2026 is confirmed provisional operation phasewith a simple resolution of the executive body, without having to wait for the final approval of the budget.
On the other hand, it extends up to the 2028 the ability to use without destination constraints the resources deriving from renegotiation operations, from the repurchase of bonds or from the suspension of the principal amount of mortgages. This flexibility represents a key element: local authorities will be able to decide autonomously how to use the freed up sums, strengthening services, investments or budget balances.
The central role of the Cassa Depositi e Prestiti
Table of Contents
- The central role of the Cassa Depositi e Prestiti
- Which loans can be renegotiated
- The new financial conditions after the renegotiation
- Guarantees, constraints and responsibilities
- How to join: a digital procedure marked by deadlines
- Renegotiation of 2026 mortgages for local authorities: the Cassa Depositi e Prestiti circular
The circular no. 1310/2025 of the Cassa Depositi e Prestiti (CDP)published on 23 December 2025. The document specifically regulates the renegotiation, in the first half of 2026, of the loans granted by CDP to local authorities.
According to estimates provided by the Cassa itself, over 5,500 entities could be affected by the operation: around 2,000 in the North-West, 830 in the North-East, 800 in the Centre, 1,480 in the South and 430 in the Islands. Numbers that demonstrate the national scope of the intervention and its potential impact on the territories.
The stated objective is clear: reduce debt pressure and allow entities to recover financial margins to be allocated to the communities they administer.
Which loans can be renegotiated
The renegotiation does not concern all existing loans without distinction. The circular precisely identifies the characteristics of eligible loanslimiting the operation to those that meet well-defined requirements.
Mortgages can be accessed for renegotiation:
- a fixed or variable rateordinary or flexible;
- entirely borne by the institution’s budget;
- already in amortization on 1 January 2026, with a residual debt equal to or greater than 10,000 euros;
- expiring after 31 December 2033.
Also included are loans already subject to previous renegotiations and those registered to failing entities, provided they have obtained the approval of the stably rebalanced budget by the Ministry of the Interior.
However, among others, loans linked to specific special laws, those transferred to the Ministry of the Economy, mortgages with structures indexed to inflation or those registered to defaulting entities or those in non-regularized financial conditions, are excluded.
An important element is that each entity will be able to renegotiate only loans included in the official list made available by CDP via its IT application.
The new financial conditions after the renegotiation
The renegotiated loans keep the final deadlinebut they introduce a different payment structure. The residual debt is “frozen” at the value existing on 1 January 2026 and repaid according to a more gradual mechanism.
They are expected in the two-year period 2026-2027 light semi-annual installmentswith a principal amount equal to 1.5% of the residual debt, supported by interest calculated on a post-renegotiation fixed rate. From 2028 onwards, repayment continues in constant installments according to the classic “French” plan.
The new interest rate is determined based on the principle of financial equivalenceensuring that the current value of the flows remains consistent with that of the original loan, taking into account the residual duration and market conditions.
Guarantees, constraints and responsibilities
Even after renegotiation, the loans continue to be backed by a irrevocable payment delegation on the main revenues of the entity, as required by the Consolidated Law on local authorities. Any contractual obligations already in place remain valid, while the CDP retains the right to withdraw or terminate the contract in the event of non-compliance or untruthful declarations.
It is also established that renegotiated loans they cannot be subject to new renegotiations promoted by CDP until 31 December 2028, thus introducing a significant time constraint for the financial planning of institutions.
How to join: a digital procedure marked by deadlines
The membership procedure is divided into three phases: choice of conditions, submission of the application and completion of the contract. Everything happens through a online application made available by CDP, accessible with the credentials already in use by local authorities.
During the opt-in period, institutions can select loans to renegotiate, review the new terms and download the necessary documentation. The transmission of the digitally signed documents and the payment delegation represents the decisive step to arrive at the final countersignature of the Fund.
Here is the complete document.
