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Italy to approve measures on bank state aid on Dec. 22 - report
December 15, 2016 / 9:29 AM / a year ago

Italy to approve measures on bank state aid on Dec. 22 - report

MILAN, Dec 15 (Reuters) - Italy’s government stands ready to approve on Dec. 22 a package of measures worth 95 billion euros ($99.8 billion) to support the country’s ailing banks, including Monte dei Paschi di Siena, la Repubblica reported on Thursday.

* The state plans to make 15 billion euros available to backstop share issues at Monte dei Paschi and other troubled lenders such as Popolare di Vicenza, Veneto Banca, Banca Carige . The decree will not mention specific banks.

* The Treasury was not immediately available for a comment.

* Italy would like to include in the decree measures to cushion losses for investors whose bonds will be converted into shares if the state steps in to prop up the banks.

* The Treasury is still in talks with the European Commission over the possibility of sparing retail bondholders from any losses. A Treasury source is quoted as saying “the road is narrow and uphill”.

* The decree will also include 80 billion euros in guarantees that the state could provide to support bank liquidity. It would guarantee bonds that lenders could use as collateral against European Central Bank loans or as assets to be sold. ($1 = 0.9524 euros) (Reporting by Valentina Za and Paola Arosio; Editing by Mark Bendeich)

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