January 7, 2019 / 10:14 AM / 3 months ago

Carige administrators to meet heads of bank guarantee fund by mid-week

FILE PHOTO: A man rides a bicycle past a Carige bank in Rome, Italy September 20, 2018. REUTERS/Max Rossi/File Photo

ROME (Reuters) - The special administrators in charge of Banca Carige (CRGI.MI) will meet the heads of a banking fund that financed a rescue of the troubled Italian bank early this week, the fund’s chairman said.

The European Central Bank last week selected three administrators to take charge of Carige to try to save the bank after its top shareholder blocked a new share issue that was part of an industry-financed rescue.

“We’re definitely going to meet them in the first part of the week, possibly even today,” Salvatore Maccarone, chairman of the FITD fund, told Reuters by telephone.

Italy’s FITD depositors guarantee fund has bought a 320 million euro (£287.2 million) hybrid bond to help Carige meet its total capital requirement as part of a two-step rescue of the bank.

Carige has failed to approve a new share issue that would have allowed the bond to be converted into equity if needed.

Reporting by Stefano Bernabei, writing by Valentina Za. Editing by Jane Merriman

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