(Bloomberg) -- Stellantis NV is set to pay off a 6.3 billion euro ($7 billion) credit facility backed by an Italian state guarantee as early as this week, more than a year ahead of its original due date, according to people familiar with the deliberations. 

The move to close out the credit facility with Italy’s top lender Intesa Sanpaolo SpA is aimed at reducing financing costs, the people said, asking not to be named because the plan isn’t public. The carmaker formed from the merger of PSA Group and Fiat Chrysler was using the funds to support its activities in Italy, and has been benefiting from high levels of cash and synergies from the merger, they said.  

Spokespeople for Stellatnis and Intesa declined to comment. The original repayment date was March 2023, according to a document seen by Bloomberg News. Trade-credit insurer Sace SpA guaranteed 80% of the amount.

Italy’s finance ministry approved the loan to Fiat Chrysler in June 2020 to pay workers’ salaries, suppliers and for planned investments at facilities in the country. Under the terms of the loan agreement, Stellantis was committed to continue production activities in Italy and refrain from reducing the workforce.

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