The decree with the network of public security to the banks in difficulty, and with the other measures in the program on credit institutions, will arrive in the week, probably Thursday and Friday, and will field a fund of up to 20 billion. The figure is higher than that circulated in the past few days (about 15), but also includes two billion “base” for the activation of the $ 80 billion of government guarantees on the issues of liquidity, a mechanism already authorized by Brussels in July.
The government is ready to adopt “one or more of the actions” with the “order to protect savings and preserve the economic-financial stability of the Country, the strengthening of the balance sheet of the banking system and ensure the protection of savings”. This is what we read in the report submitted to the Parliament with which the executive asked for authorization to a higher level of debt up to $ 20 billion in intervention to support the banking system
The government, as decided yesterday by the council of ministers will precede the activation of this umbrella to the banks by the passage parliamentary to vote on the authorization for the amendment of the public finance balances. “Consider it our duty to enact this intervention salvarisparmio”, explained the premier, Paolo Gentiloni, after the council of ministers. I hope that this responsibility will be shared by all forces in Parliament, starting from tomorrow.” The path would be marked even if the operation “market” of the Mount was successful; the fall recorded yesterday on the Stock exchange by the title of the Mount, however, did not provide signs of confidence, and contributes to the acceleration on public intervention.
Decree banks: a signal in the right direction from the block
In any case, the measure prepared by the government provides a range of measures that go beyond the boundaries of Siena, and serve to give some certainty to the other institutions in difficulty (Popolare di Vicenza, Veneto Banca and banca Carige in the first place) is the dossier still open for the world of credit from the resolution fund to the discipline of the taxes deferred to the node of the most popular after the intervention of the Council of State (see The Sun 24 Hours on Sunday). For this reason, the idea is to approve the decree to close the round, also to lower a bit the fever increased in these weeks around the many spots of the Italian banking scene.
To solve the crisis of the Mount is not far distant when the State
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The heart of the measure, that in the event of further shocks could also lead to an acceleration of further (at the moment, however, excluded), it is obviously the recapitalisation measure of the Monte dei Paschi if the market were to be wrecked permanently. The decree in fact silen fund "undifferentiated", which could reach up to 20 billion to support Mps or down if the Rocca Salimbeni, the ec would by itself, and the network is directed, then, to the two venetian and Carige. Will then be subsequent measures to distribute "shares" to the different operations to be carried out. Far from Siena, however, the times would be longer because the path that passes from the disposal of non-performing loans and subsequent need for capital is still to be covered.
From Europe to the market, the State, each to do his part
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the resources of The fund would be financed by debt, and for this reason, the government will ask Parliament for the go-ahead to the amendment of the public finance balances. Article 81 of the Constitution, one that, in 2012, it introduced in our fundamental Charter, the new balanced budget rule, requires the permission of a parliamentary absolute majority of the components for the “borrowing from (…) the occurrence of exceptional cases.” The reference is to net borrowing, while the bottom of the save-the banks would change the net balance to be financed, and on the levels of use of the market, you have just defined for 2017 by the budget law. The problem, however, is that there are specific precedents, the coordination between the horizon drawn by the fiscal compact, and the text of article 81 is to test everything and
the bank of Italy, temporary measures, and levels
the authorization parliamentarian serves to "lock up" the process. The fund, has confirmed, however, the minister of Economy Padoan, “has an impact on the debt a temporary measure, one-off” and don’t touch then “structural adjustment” (see The Sun 24 Hours on Sunday). The recapitalization “precautionary” would trigger the forced conversion of subordinated bonds, you would see recognized a value (which is subject to via free the Eu) much less than the load expected in the voluntary conversion. The mechanism could be accompanied by forms of compensation for the small investors who have purchased at the time these securities, but their risk profile was appropriate. The “burden-sharing”, however, would not apply if the role of Treasury was limited to the membership of the capital increase by 200 million in the guise of a shareholder in the Monte and Via XX Settembre holds 4% of shares: in the game there could be a third hypothe sis, that of “almost success” of the operation of the market with the need for the Treasury (together with the other protagonists of the operation) to put on the plate something more, without, however, resort to plan B. The point, however, it is important to understand the response of the Eu.
in Addition to the fund for the recapitalisation, which accompanies the activation of a portion of the 150 billion of guarantees on the issues of liquidity that had been previously authorized by Brussels, the decree is called to dissolve several banking issues, starting from the correction on the Dta that lets you calculate on 2016, the fees paid under the 2015 and by instalment in five years of the new contributions to the resolution fund.
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