June 23, 2017 / 3:29 PM / 7 months ago

Italy to start wind-down of Veneto banks Friday or Saturday-lawmaker

ROME, June 23 (Reuters) - The Italian government is expected to start liquidation proceedings for two ailing Veneto lenders by issuing an emergency decree on Friday or Saturday, a lawmaker for the ruling Democratic Party said.

The decree “is on its way, between this evening and tomorrow there will be a cabinet meeting,” Laura Puppato told Reuters.

The decree will effectively remove one of the government’s biggest banking headaches by splitting the two lenders’ assets into “good” and “bad” banks.

Italy’s top retail bank Intesa Sanpaolo is set to buy the good assets for 1 euro, leaving the state to foot the bulk of the bill for the losses that will arise from the liquidation.

Reporting by Francesca Piscioneri, editing by Silvia Aloisi

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