Banks: the EU agrees to Italy – ANSA.it

The European Commission gave the green light Sunday to an audience backboard to Italian banks, to be activated by the government as necessary to cope with any market turbulence. It follows from a note of the Committee. It is, according to the Wall Street Journal, a State guarantee of 150 billion liquidity for banks to create a support program estimate, to be activated only in 2016, and for solvent institutions, respecting the “rules on state aid” in “exceptional” situations. “The European Commission has authorized, under the rules on State aid, the introduction of a guarantee scheme for Italian banks until 31 December 2016. The scheme covers the liquidity support measures in favor of banks solvent as a precautionary measure “writes the European Commission in a statement. The scheme is in line with the Commission’s guidelines on state aid to banks during the crisis (communication published in 2013), a scheme already applied in several states. “Italy has requested the Commission to authorize the liquidity support, which can be supplied to solvent banks in case of need,” the statement said. Italy “has notified this measure for precautionary reasons”, but “there are no expectations which arises the need to use this pattern.” “During the application of extraordinary rules for state aid to banks, the Commission shall authorize the guarantee schemes for a period of six months to monitor developments and adjust conditions according to them,” the note states. “As demonstrated by this decision and other precedents, there is a number of solutions that can be put in open field than the European rules to address the turbulence”, concludes the Commission.

Sources, institutions assess costs and guarantees mode – the Italian banks expect to see costs and modalities of the guarantee scheme for the liquidity that the state has become authorized by the EU. And ‘what relate different financial sources, according to which “beyond what will be activated and whether such guarantees”, the option “is a useful safety net also recognized immediately in the stock market.” According to the same sources, there are “several institutions that could enable the scheme that has the advantage of not having to provide, as is done in operations with the ECB, bonds (collateral) as collateral.” Titles that some institutions have already given to the Q and the ECB itself, or who want to keep in the portfolio

Source MEF, investor protection scheme – The scheme proposed by Italy and authorized by the Commission until 31 December 2016 “puts the government in a position to intervene in case of adverse scenarios,” because “before the financial market turmoil of recent days has seen fit to assume all scenarios, even the most improbable, to be ready to intervene to protect savers “: they do know about the sources of the MEF state guarantee scheme for banks. This provides that the State “can provide its guarantee on the debt of solvent banks (senior bonds newly issued)” and the eventual guarantee would be in the hands of the Treasury. The sources explained that “before the financial market turmoil of recent days, the government has seen fit to assume all scenarios, even the most improbable, to be ready to step in to protect savers.” And as already Renzi had said last Friday, “for reasons of caution the government equips all necessary measures to deal with any scenario, even though at the time did not deem the conditions for such scenarios can be realized.”

Boccia, okay EU public guarantee chosen common sense – “Allowing the provision of liquidity support to banks Italian solvents by the European Commission represents a sensible choice.” This was stated by Francesco Boccia, president of the House Budget Committee. “The Scheme of guarantees on bank liabilities, up to the end of 2016 for precautionary reasons, to be used in case of necessity – he explains – it is appropriate to reiterate to the markets that the institutions are willing to do anything to sterilize distortive effects and in Brexit the possible turbulence linked to the loss of confidence. ” “Now – he continued – the major efforts already made for the first phase of Atlas from the Italian banks that have acceded to it, and at the same CDP, serves complete the financial framework with sufficient resources to cope with the full amount of the required capital increases and final disposal of bad debts. the conditions – ensures Petanque – we are all, now serving speed and determination as well as international resources that have so far been lacking. as stated several times in Parliament, with 10 billion to 12 billion it meets the needs of basis related to the completion of the capital increases and the completion of the support provided for the NPLs. the remainder of the market, if it guaranteed a minimum public commitment, is able to absorb it gradually, “he concludes.