Ten-seven billion to save two banks

Business 27 June, 2017

Intesa Sanpaolo will take up the activitйs of Banca Popolare di Vicenza and Veneto Banca. (Photo: AFP)

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A fault?

While the system Italian bank has suscitй of bright inquiйtudes last year, Rome refers to this as follows to reassure the small йpargnants йchaudйs by the rйcentes bankruptcy of several banks rйgionales.

“The total resources mobilisйes could reach 17 billion euros, but the dйpense immйdiate for the State is a little more than 5 billion euros,” expliquй а the press, the minister of Economy and Finance, Pier Carlo Padoan, а after a council of ministers of 20 minutes.

Mr. Padoan has prйcisй that 4,785 billion euros would be used in the immйdiat а “maintain the capitalization and strengthening the financial position” of the banking group Intesa Sanpaolo, who will take up the activitйs sound of the Banca Popolare di Vicenza and Veneto Banca, with 400 million euros supplйmentaires “as warranty coverage”.

The approximately $ 12 billion more prйvus reprйsentent a cover for the crйances suspicious.”This dйcret helps stabilize the йconomie of the Vйnйtie and save the activitй йconomique banks vйnitiennes” that will continue а exist and а operate within the framework of the group Intesa Sanpaolo, has assurй Mr. Padoan.

“This rescue is in favour of dйtenteurs of current accounts, йpargnants (…), those who work in these banks, in favour of the йconomie of this territory and, in the end, the good santй of our system of banking,” renchйri the head of the government, Paolo Gentiloni.

The proposal of Intesa Sanpaolo to purchase for a symbolic one euro the activitйs sound of the two banks vйnitiennes was screaming at the scandal, but Mr. Padoan has estimй that the offer of this group йtait the more “significant”.

No alternative

“The only alternative solution йtait a bankruptcy dйsordonnйe, or selling small pieces of the two banks, which would have complutement dйtruit their capacitй opйrationnelle”, he argued.

The Italian government has been able to adopt this dйcret rescue because the autoritйs europйennes have estimй that these small banks implantйes essentially Vйnйtie (north-east) could be sauvйes by a national response.

According to Il Sole-24 Ore, the daily newspaper of the financial community, “there is a motivation а character in the industry that pushes а see this йpilogue as йtant positive, or at least а do not regret as зa that the two banks have not йtй nationalisйes”.

Under the йgide of the State, the two banks vйnitiennes would dы “reconquйrir with their forces alone the durabilitй and the rentabilitй lost (…). Of the able to follows that Banco Popular in Spain will be the time and the possibilitй to resume within Santander, the recovery of the two banks vйnitiennes within Intesa Sanpaolo, could be a lot more easy and fast”, writes the newspaper.

According to the mйdias Italian, however, it should be accompanied by 3’500 а 4’000 job losses, which will be primarily by dйparts in retirement, including Intesa San Paolo.

System Italian bank has suscitй of bright inquiйtudes the year passй because of the importance of his portfolio of crйances doubtful reprйsentent one-third of the total in the euro area, problumes of consolidation, but also of its йclatement, the pйninsule cash prus 700 йtablissements.

Signs of recovery have since emerged, with the succus for example, the policy of restructuring engagйe by UniCredit, but the banks vйnitiennes appeared as one of the йlйments major fragilitй.

Other йlйment of fragilitй, the bank Monte dei Paschi di Siena (BMPS) should be nationalisйe in the next few weeks, but it still has to find an agreement with Brussels on the job cuts.