Ok of a public guarantee for EU banks support Italy – Il Sole 24 Ore

BRUSSELS – The European Commission has announced that Italy has asked to authorize the provision of liquidity to the banks and at the same time support announced it had given the green light. He indicated the Antitrust Authority spokesman following state aid. It is a guarantee scheme valid until 31 December 2016 covering the solvent banks. The spokesman indicated that Italy has notified the measure, which can be turned to face possible market turbulence, for precautionary reasons and that “there is the expectation that such a need to use it. ‘

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The Commission’s decision was taken on the basis of the “guidelines” on state aid to banks during the crisis of 2013. Brussels remember that schemes of this nature are currently operating in several states. The fact that the Competition Authority does not expect that Italy needs to actually use the scheme to support the liquidity of solvent banks (which dureraàfino to December 31) is based on the facts.

The instrument of public guarantee schemes to liquidity ‘and’ was abundantly used during the long financial crisis. Italy is now in a small company: according indicate when EU sources, a similar pattern, and ‘in force in Greece, Portugal and Poland. The objective and ‘temporarily stabilize the balance sheet liabilities of banks. As there is a capital problem, the support measures should not be preceded by notification of a restructuring plan. A restructuring plan, however, ‘must be submitted to the Commission within two months if the total amount of liabilities’ guarantee (including guarantees granted before the date of that decision)’ and ‘higher than both the 5% of the liabilities’ total that a total amount of 500 million Euros. ”

The guarantees, and ‘s in the EU Communication of July 2013 which regulates these cases, may only be provided for new senior debt issues (senior) credit institutions (subordinated debt and’ excluded ); on debt instruments with maturities from three months to five years (or a maximum of seven years in the case of covered bonds). Those maturing in over three years, except in duly justified cases, shall be limited to one-third of the outstanding guarantees granted to an individual bank. Every three months, the state must “report to the Commission on the functioning of the regime, the fees charged for guaranteed debt issues and expenses.”

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