Italy Seeks Amplified Bad-Debt Punch With $5.7 Billion Bank Fund
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Italy’s 5 billion-euro ($5.7 billion) bad-bank fund may unleash wider sales of non-performing loans by letting lenders access state guarantees.
The Atlante fund intends to amplify its effect on local banks’ efforts to sell bad debts by using some funds to buy the riskiest soured loans. That could then help banks qualify for state guarantees on their least-toxic debts, which would ease risks for investors and potentially spur sales.