Italy Says Close to Completing Monte dei Paschi Rescue
June 26 2017 - 9:18AM
Dow Jones News
By Giovanni Legorano
ROME--A rescue deal which will see the Italian Treasury taking
over troubled lender Banca Monte dei Paschi di Siena SpA is nearly
finalized, Bank of Italy officials said Monday.
"We got to the end. The formal consensus of the [European
Commission's] Directorate General for Competition is missing, but
there are no doubts [about the MPS rescue plan]," said Carmelo
Barbagallo, in charge of banking supervision at the Bank of
Italy.
Mr. Barbagallo said Monte dei Paschi would close a bad loans
sale, which is key part of its rescue package, with the Atlante
fund. Atlante will be able to use funds previously committed to the
purchase of bad loans from Banca Popolare di Vicenza SpA and Veneto
Banca SpA to buy Monte dei Paschi's bad loans.
The government assumed responsibility for liquidating the
portfolio of bad loans of the two Veneto-based banks, while their
best assets will be transferred to Intesa Sanpaolo SpA, in a deal
announced on Sunday.
-Write to Giovanni Legorano at giovanni.legorano@wsj.com
(END) Dow Jones Newswires
June 26, 2017 09:03 ET (13:03 GMT)
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