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6/25/17

Italy readies 17 billion euro package to save two failing banks

Italy’s government has said it will spend up to 17 billion euros to rescue the debt-stricken Veneto Banca and Banca Popolare di Vicenza (BPVI). The European Commission quickly approved the plan.

Italian Finance Minister Pier Carlo Padoan said the government could pay as much as 17 billion euros ($19 billion), although the immediate cost would be a little over 5 billion euros.

Some 4.8 billion euros will be immediately earmarked to "maintain capitalization” of the retail bank Intesa Sanpaolo, which will take on the banks' "good" assets. A further 400 million euros will be set aside as a "guarantee" to Intesa.

The European Commission (EC) quickly approved the plan:  "The European Commission has approved, under EU rules, Italian measures to facilitate the liquidation of BPVI and Veneto Banca under national insolvency law," the EU's executive arm said in a statement on Sunday.

Read more: Italy readies 17 billion euro package to save two failing banks | News | DW | 25.06.2017

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