History Article
Close
This article was published on 26 January 2016 at 20:28.
The last change is the 26 January 2016 at 22:44.
We have reached an agreement at the EU for the management of bad debts of Italian institutions. He said the finance minister, Pier Carlo Padoan, after the meeting at around 22 with European Commissioner Vestager lasted over five hours. The mechanism provides for the sale of non-performing loans to vehicle companies that will issue bonds on which banks will be able to buy government guarantees “at market prices”, said EU Commissioner Vestager.
“We have reached an agreement with the Commission of a guarantee mechanism which is a very useful tool for the management of bad debts, “said Padoan. It is a guarantee on the securitization of loans (GACS), which “accompanies and strengthened, taking into account measures for the speeding up of the processes that have already been introduced a few months ago. So -added – it is a tool that complements the Italian box for tools to manage the non-performing loans. ” “The technical details will be finalized in the coming hours,” then he stated, explaining that the mechanism “is a bit ‘more complicated’ a State guarantee. But he has an incentive mechanism very useful, in my opinion, to speed up. “
To those who wondered whether the agreement has been achieved on the cost of state guarantees as a percentage of the nominal value of impaired loans, the minister replied: “It’s a bit ‘more complicated than that, it provides a mechanism incentive to accelerate the uptake of the credit market in trouble. ” In essence, it seems to understand, the cost of the guarantee would increase over time. According to sources of the Ministry, the mechanism consists of a ‘guarantee on the securitization of loans. ” With Padoan there are the technicians of the Treasury who have followed step by step the negotiations with the European Antitrust months.
Banks: EU, good agreement, guarantees at market prices
The European Commission ‘welcomes the agreement reached today with the Minister Padoan on terms to put in Standing a guarantee scheme to support Italian banks in addressing non-performing loans. ” So the Competition Commissioner Margrethe Vestager. “Guarantees are priced at market conditions so that they do not constitute state aid,” he added. “With other reforms put in place by Italy should improve the ability of banks to lend to the real economy.”
“Encouraged by the cartel on guarantees for enabling Italian banks to deal with non-performing loans. Thanks to the efforts of Vestager and Padoan “writes on Twitter Vice President of the EU Commission Valdis Dombrovskis.
The price of collateral
Much of the match between Rome and Brussels was all played on the price of the guarantee. The issue is the value that Italian banks will recognize the Treasury to have a guarantee of last resort on senior bonds issued to finance the vehicles securitising non-performing loans. The scheme being studied to alleviate the burden of suffering is simple: the banks will give the SPV (Special Purpose Vehicle) newly established receivables sick, against the issue of junior tranches of bonds, mezzanine and senior. On the latter category – which has the best quality of collateral credit – banks can buy a public guarantee by the Treasury through the CDP. The hypothesis is that the warranty costs an intermediate value between 20-30 basis points displayed by the banks and 100bp, indicative, sought by Brussels. According to preliminary statements, it seems to have prevailed the Brussels line even if you have not provided details of the agreement.
© ALL RIGHTS RESERVED
Permalink
No comments:
Post a Comment