October 2, 2019 / 11:18 AM / 21 days ago

Italy's AMCO close to launching fund for soured property loans-document

MILAN, Oct 2 (Reuters) - Italian state-owned bad loan manager AMCO is close to launching a fund to help banks offload impaired property loans repackaged as securities, a Treasury document showed on Wednesday.

The fund would have an initial size of 2 billion euros ($2.2 billion) which could eventually be expanded to 3-4 billion, the document, which contains updated budget forecasts, showed.

A source familiar with the matter said banks would take a stake in the fund in exchange for transferring to it portfolios of distressed home mortgages - an asset class lenders are now tackling in their clean-up efforts.

Two sources told Reuters on Tuesday, UniCredit is set to announce a 5 billion euro disposal of unpaid house mortgages next month.

$1 = 0.9159 euros Reporting by Valentina Za

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