Best Italia Economy Portal: Visco: the bottom Atlas ‘response to market turbulence’

Saturday, April 16, 2016

Visco: the bottom Atlas ‘response to market turbulence’ – Il Sole 24 Ore

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This article was published April 16, 2016 at 19:49 hours.
the last change is the April 16, 2016 at 21:02 hours.

The fund Atlas is a “response to the market turmoil.” This was stated by the Governor of the Bank of Italy, Ignazio Visco, during a joint press conference with Economy Minister Pier Carlo Padoan, the end of the meetings of the IMF and the G-20 finance in Washington. Visco stressed that the suffering among the banks’ balance sheets are “a question that needs to be actively addressed.” The crux of Atlas and the private sector interventions is linked “to two aspects. The first is the ability of these individuals to carry out interventions by banks a substantial amount of non-performing loans. The second is the impact this may have on banks that need to be renovated. ”

Atlas, private solution designed with the government in the role of “facilitator” (as Padoan said in the interview to Il Sole 24 Ore, editor’s note) to shore up the Italian banking system, “will solve the problems inherited by banks in years when there was a decline in production by 25%? No, “but it is a” good “piece in a larger process. It is a solution “gradually.” Performing loans amounted “to around 200 billion euro, with 80 billion set aside for losses. In the face of these 80 billion are guarantees of 120 billion, “said the governor of the Bank of Italy, adding that hardships are part of non-performing loans, which are a total of 350 billion euro.

“We need a comprehensive approach – added Visco – which also sees a public role. It would be serious if the government and the only mettessero the signature supervision. Individuals are discussing, even with us. When you create a fund you must pass a series of tests. We are very strict ”.

In Italy, meanwhile, “has said little” in the meetings of the IMF and “this is a good sign,” commented Minister Padoan. But it was discussed as a “virtuous example that uses the most of his tools.” On the general framework of the global economy, meanwhile, “prevails a moderate pessimism.” Economy Minister told of the risks that the IMF and the G20 have identified for Europe, including the Brexit, refugees, migrants and terrorism.

As for Atlante after UniCredit, which last week had pre-approved in a Board of Directors participation up to one billion, Intesa Sanpaolo also approved its adhesion to the substrate with a figure between 800 million and one billion. With the Cassa Depositi shares (half a billion), the other banks, the Foundations (500 million), and probably of the SGA, the asset management company established for the recovery of non-performing loans of the Bank of Naples and today widely capitalized, the Quaestio of Sgr tool can start with a budget of at least $ 4 billion, the minimum required by regulators to have covered (with 70% of the total) recapitalisations of Veneto Banca Popolare Vicenza and also in the case – the worst case scenario – in which increases go completely deserted.

Other adhesions, however, are expected in the coming days, and then, one of the promoters, that on Thursday they had spoken in a note of a “significant number of preadesioni” the aim is to increase already in coming hours the resources available. Subsequently, obtained the Consob approval, it is likely to launch a promotion phase of the fund on the market, from other categories of institutional investors: the closing of the fund would therefore be set at the end of April.

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