MILAN (Reuters) - Assicurazioni Generali (GASI.MI) could give up to 200 million euros (168.24 million pounds)to a new bank rescue fund dubbed Atlante 2, the chief executive of Italy’s top insurer said on Friday.
“Yesterday, the investment committee and the board of Generali took a decision over Atlante and gave me a mandate to take on a commitment for up to 200 million euros,” CEO Philippe Donnet said in a conference call with reporters.
In an effort to shore up its struggling lenders, Italy in April sponsored the creation of the Atlante fund, which raised 4.25 billion euros from the country’s leading financial institutions. Generali contributed 150 million euros.
Having spent more than half its resources to salvage two regional banks, Atlante is now seeking to raise fresh funds that sources said would be used solely to buy bad loans off lenders.
Italian banks hold 200 billion euros of loans to borrowers deemed insolvent after a three-year recession.
Reporting by Valentina Za, editing by Steve Scherer