Padoan: “Early interventions on reimbursements to depositors and bank credit recovery” – The Republic

WASHINGTON – Pier Carlo Padoan announced for the beginning of next week, two important measures, two decrees. One dealing with repayments to bondholders of Banca Etruria, Cassa di Chieti, Marche and Banca Cassa Ferrara. The other is used to accelerate the insolvency and bankruptcy procedures to recover debts of the banks. The latter, in practice, helps institutions to raise the market value of loans to be sold and thus to minimize costs for the balance sheets of banks. Ignazio Visco estimated at 200 billion the amount of these sufferings, of which 80 are net of provisions. Hardships are part of 350 billion non-performing loans. It ‘a question that “must be dealt with firmly,” he assures.
Governor and Minister speak in Washington, during a joint press conference following the G20 summit and a flurry of meetings at the IMF and the Bank world. Visco took the opportunity to explain that the Atlas Fund, launched a few days ago, precisely serves to support the banks and represents “a response to the market turmoil”. It ‘a private fund, “a good piece” for a gradual solution to the banking problems. Padoan defines Italian growth “encouraging”, although estimates of the Fund are smaller than those of the Government, respectively 1 and 1.2% this year. Global growth instead, according to his estimates, “prevails a moderate pessimism.” You have to be careful – he explains – because this attitude “is likely to be self-determining.” They serve rather policies that support the recovery.

Italy to grow back. Italy returned to growth after three years of recession, the last to the first quarter data suggest an acceleration recalls Padoan . In 2015, he says, the Italian economy returned to growth, of 0.8%, after three years of decline. The end result was very close to the last forecast published in the draft budget for 2016. The minister points out that last year the Italian trade surplus rose to 45.2 billion from 41.9 billion in 2014. And the ‘ active current account has grown to touch 2.1% of GDP surpassing the levels reached at the end of the nineties.

Increase employment. the occupation in its time has increased by 0.8% and the average unemployment rate was 11.9%, down from 12.7% in 2014. Results made possible in part by structural reforms such as the Jobs Act and the tax incentives on new labor agreements “that have increased job indefinitely, reducing the dualism of the Italian labor market.” Padoan has reported that the latest data suggest that the growth of the quarterly GDP probably accelerated in the first quarter of the year. Based on the January and February data we estimate, anticipated the Minister, that industrial production in the first quarter has increased by 1% from the previous quarter.

Migrants, serves leap. On the migrants said that it will take time to resolve the issue: “I am convinced that the problem of migrants will not be solved in the short term”, stressing the need for “a quantum leap” from the European Union where the awareness of the problem “is growing.” The question occurs even “with new tools,” said Padoan, referring to the Italian proposal for a “compact migration” of “a medium-term strategy in support of life” in the countries from which migrants originate. The minister anticipated that in the coming days, probably early next week, will be approved legislative interventions that reduce the debt recovery time and regulating the repayments to bondholders interested in the issue of the four banks in the resolution.

background Atlas and criticism. the criticisms to the bottom Atlas, such as those contained in the reports of large investment banks and US rating agencies such as Fitch and S & amp; P, are “based on conjecture” has Padoan stressed, during the final press conference of the IMF Summit. “I read a lot of criticism and I noticed a lot of misinformation,” said the minister. “The constitution of the fund is still ongoing,” he added, pointing out that the project has the dual purpose of introducing backstop security for recapitalization of banks and to “intervene with a new subject to the sufferings allows you to create a market.”

Topics:

IMF

international Monetary Fund

GDP

economy

jobs act

growth

unemployment

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