April 4, 2017 / 8:11 AM / 10 months ago

Popolare di Vicenza bonds rally as EU comments fuel bailout hopes

MILAN, April 4 (Reuters) - Banca Popolare di Vicenza’s senior debt rallied on Tuesday as investors bet the troubled Italian regional bank will be granted the state aid it requested alongside rival Veneto Banca after encouraging comments from the EU Commission.

After a meeting with Italian authorities on Monday, a spokesman said the Commission was confident that a solution “that is efficient, sustainable and in the interest of financial stability” could be found in the coming weeks.

Italy is keen to avoid having to liquidate the two banks under strict EU rules that would impose losses on their creditors and large depositors as it fears hurting confidence and further undermining its frail banking system.

Italian sources familiar with the matter told Reuters on Monday that an accord over the state bailout request was within reach. (Reporting by Elvira Pollina, writing by Valentina Za)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below