Anonymous ID: ef650d June 28, 2020, 6:39 a.m. No.9775414   🗄️.is 🔗kun   >>5457 >>5467

Paschi Board to Meet on Transfer of Bad Loans

 

The board of Banca Monte Dei Paschi di Siena SpA is expected to meet Monday to weigh a plan to clear as much as 9 billion euros ($10.1 billion) of soured loans from its books and pave the way for privatization of the world’s oldest bank, Il Messaggero reported on Sunday.

 

The plan to move the non-performing and unlikely-to-be-paid loans to state-backed debt manager Amco is in its final stages, the newspaper said, citing unnamed sources at the Italian Treasury.

 

In May, the European Union said Paschi’s planned transfer of bad loans to Amco didn’t constitute improper government assistance, wrapping up months of talks between the Italian Treasury and the European Commission over the bank’s request to offload the loans.

 

The move would significantly reduce the bank’s cost of risk and probably make Monte Paschi more attractive in a takeover or merger.

 

Monte Paschi, founded in 1472, is 68% owned by the Italian state after a government-backed recapitalization in 2017.

https://www.bloomberg.com/news/articles/2020-06-28/paschi-board-to-meet-on-transfer-of-bad-loans-messaggero-says