Italy Banks’ Bad Debt Guarantee System Ready by End March
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The state guarantee on Italian banks’ bad debts agreed by Prime Minister Matteo Renzi’s government and the European Union may start operating as early as the end of March, a senior Treasury official said.
“We think that operations might be brought to the Treasury within a couple of months,” Alessandro Rivera, the head of the Italian Treasury’s Banking, Finance and Legal Affairs unit said in a telephone interview. The cost of the guarantee for will be about 90 basis points in the first three years, the official said.