October 12, 2016 / 6:41 PM / 9 months ago

Italy's Atlante confirms 1.6 billion euro investment in Monte Paschi bad loans

1 Min Read

The Monte dei Paschi di Siena bank logo is pictured at the bank's headquarters in Siena, Italy January 25, 2013.Stefano Rellandini/File Photo

MILAN (Reuters) - Italian bank bailout fund Atlante confirmed on Wednesday a commitment to invest up to 1.6 billion euros ($1.8 billion) in the planned securitisation of bad loans at ailing bank Monte dei Paschi's (BMPS.MI).

Monte dei Paschi announced in July an emergency rescue plan that includes a capital increase of up to 5 billion euros and the transfer of 28 billion euros of non-performing loans to a vehicle which will sell them in a securitisation scheme.

The fund managing Atlante, which in July had committed to buying the mezzanine tranche of the securitised loans, said in a statement that a due diligence of the soured debts had been completed and had confirmed the initial price estimates.

($1 = 0.8928 euros)

Reporting by Silvia Aloisi

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