ROME May 29 An Italian parliamentary committee
on Monday approved measures aimed at helping the country's
lenders sell their soured loans repackaged as securities.
The new rules must be signed off by Italy's parliament as
part of a package on which the government is expected to ask for
a confidence vote.
The measures will allow securitisation vehicles to lend
money to troubled borrowers to help their impaired loans revert
to performing. The vehicles will also be able to buy shares or
other equity-like instruments issued by borrowers in trouble.
Such measures could be particularly useful to tackle
so-called unlikely-to-pay loans, whose recovery process usually
entails a debt restructuring accord which may include a
The new rules also allow to set up a company whose sole task
is to buy and manage the assets backing the loans, with the aim
of supporting the securitisation process.
Italian banks are saddled with 349 billion euros in soured
loans following a harsh recession that ended in 2014. Sales have
stalled so far due to a pricing gap that would force lenders to
sell at a loss, hurting their capital base.
(Reporting by Giuseppe Fonte, writing by Valentina Za)