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BRIEF-Fitchs says EU bad bank faces significant hurdles
February 15, 2017 / 1:41 PM / 8 months ago

BRIEF-Fitchs says EU bad bank faces significant hurdles

Feb 15 (Reuters) - Fitch -

* Fitch - there are substantial hurdles to establishing an eu-wide bad bank, or asset management company (AMC), to deal with banks’ bad loans

* Fitch - to establish an EU-wide bad bank, EU state-aid rules would probably require losses for junior debt to cover associated asset write-downs

* Fitch - consider creation of an EU- or eurozone-wide centrally funded asset management company unlikely in near term

* Fitch - believe any move towards further risk-mutualisation in eurozone would be politically difficult, notably in germany

* Fitch - we would not expect an EU-wide asset management company to lead directly to a greater lending supply Source text for Eikon:

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