Bad debts: public guarantee on a few operations – BBC

banks

Milan , January 27, 2016 – 16:50

The state will provide its guarantee” at market prices “on the sale of non-performing loans” safer “by banks , and the operation will not affect the public accounts that despite the concerns of the EU “are under control both in the short and in the medium, which in the long run.” This is what was stated by Minister of Economy, Pier Carlo Padoan, answering some questions in the House, the day after the tiring agreement reached with Brussels on disposal of bank loans deteriorated in special company, called “bad bank.” Italian banks, weighed down by 200 billion of bad debts recovery, will sell “assuring” the State guarantee fee. Although the agreement with the EU Commission does not seem to have convinced the way the markets, at least judging by the reaction of the Milan Stock Exchange, the worst among the European.

Disposals easier

Padoan said that the intervention of the Treasury will be selective, and the guarantee will cover only some operations, those involving the sale of loans less difficult. “The presence of government guarantees will facilitate the financing of the disposal of bad debts and will have no impact either on the debt, or the deficit,” the minister said, noting that the EU now recognizes that it is not State aid. Padoan has returned to ask the ECB as clear and timely communications regarding the supervision of banks, after the hard blow suffered by some Italian banks last week, Monte dei Paschi in the first place, because of partial information and mismanaged by Frankfurt.

Fight evasion record

Padoan then dismissed the concerns of the EU, endorsed by Forza Italy, the stability of public finances. The ratio of debt to gross domestic product will drop from the peak of 133% in 2015 to 110% in 2026, but would fall equally although rates would increase on average by one point, or if economic growth was lower than the forecast of a half percentage point. In 2015 the proceeds of the fight against tax evasion will exceed 14.2 billion recorded in 2014, concluded Padoan, remembering, who complained that the burden of taxation on the price of gasoline in Italy is similar to the European average: VAT and excise duties weigh on gasoline to 70.3% in Italy, compared with 67, 8% of the EU average.

27 January 2016 (modified January 27, 2016 | 18:43)

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