Wednesday, January 27, 2016

Banks, Padoan: no impact on deficit and debt guarantee. EU: the agreement encourages sales suffering – Il Sole 24 Ore

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This article was published on 27 January 2016 at 15:01.
The last change is the January 27, 2016 at 17:52.

“The presence of government guarantees will facilitate the financing of the sale of loans and will have nor impact on the public debt nor the deficit. ” This was stated by Minister of Economy, Pier Carlo Padoan, replying in question time in the House to a question on the agreement with the EU to guarantee the bad debts. The minister added that the “larger and stronger banks more transparent will run more efficiently performing loans.” Since 2014 the government has clarified Padoan “addresses the issue bad loans in a structural perspective in the wake of the reforms. We intervened to encourage the consolidation of the sector with the reform of the largest banks, the reform of the banking foundations, the next reform of the banks of cooperative credit. ” But of the times and those who ask whether the rules on collateral for the securitization of bad debts can already get to the Council of Ministers called for tomorrow afternoon, the minister states: “We do everything to speed up the whole process.”

A short new measures on liquidation proceedings
“In 2015 we started the review of the selection procedures and we are about to enter other measures pending a wider reform of bankruptcy law” he was announced by Minister Economy.

Warranty Treasury only suffering safer
“It is a guarantee that the Treasury will sell to operators that request it as part of securitization transactions. The state provides only senior tranches, ie those safer and you can not redeem the tranche most ‘risky before they are will be fully reimbursed tranches more’ secure ‘said Padoan responding during question time to a about the guarantee mechanism useful to dispose of bad loans on the balance sheets Bank agreed with the EU.

The public accounts are under control
“The public finances They are under control both in the short and in the medium and long term. ” the Minister assured Padoan. “It is not true that the debt will continue to grow until 2026, unlike the public debt to GDP, which is the most significant aggregate, is expected to fall at a rate of 2% of GDP from the peak year of 2015,” says Minister responding to a query on the fi European Commission report on the debt. The Minister then reported as the provision of a primary surplus of 2.5% per year “is not a particularly challenging event,” given that the average trend lately has been 2.4 percent. “Even in the relations” more pessimistic “- said Padoan – the debt / GDP ratio is estimated to be down, even in the case of” shock on GDP growth that assumes a permanent reduction in the growth rate by 0.5 percentage points to ‘ year”.

EU Commission, according to Italy encourages selling loans
The scheme to manage impaired loans of Italian banks with the agreement reached between the Antitrust Committee and the Italian government “will encourage banks to sell” non performing loans “as fast as possible because the price they will pay for the public guarantee increases over time.” This is the European Commission’s assessment. The EU executive has indicated that Italy intends to formally notify “soon” to the Commission the scheme agreed last night. The European executive for its part will formalize its agreement by adopting a formal decision that the system “does not involve state aid.” This procedure and ‘necessary to give legal certainty to market players. The Commission was convinced that the parameters agreed to manage impaired loans “ensure that the prices of government guarantees are in line with market conditions, reflecting the level of risk of a securitized product on comparable companies ‘Italian and through’ adjustment for the duration of maturity. ” Consequently, the State “will be remunerated at market terms for the exhibition that will take” .As for the mechanism of the scheme agreed after more than five hours of negotiations between the Antitrust Commissioner Economy Minister Margrethe Vestager and Pier Carlo Padoan, the “tranches” senior, the only ones on which there will be guaranteed by the State, will be assessed by an independent rating agency irrespective of the guarantee, at least 50% of the “junior tranches” will be sold to private investors and the Committee on the State guarantee will be based on a “benchmark” for example credit default swaps of Italian companies comparable with the corresponding due to the specific characteristics of individual loan portfolios deteriorati.L’Italia is the first country in the EU to propose such a scheme. In Brussels, notes that the Italian authorities have contacted the Commission presenting the draft State guarantee in the middle ‘in January and that the agreement’ was reached in less than two weeks.

Padoan: in 2015 revenues from recovery of evasion over 14.2 billion in 2014
“The initial data available, the revenue of contrast to ‘ tax evasion in 2015 will exceed ‘the 14.2 billion in 2014, “he assured Padoan, responding to a question in question time in the House.



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