MILAN May 23 Italian mid-sized bank Credito
Valtellinese (Creval) said it would repay ahead of time 500
million euros ($682 million) in state-guaranteed bonds it issued
at the height of the euro zone crisis, in a sign of its improved
Creval said in a statement on Friday the early
repayment would allow it to save money on fees starting from the
second quarter of the year and still leave it with a net 3.7
billion euros in assets it could use to borrow from the European
Central Bank (ECB).
The bank still has 1 billion euros of bonds guaranteed by
the state, which will mature in January 2015.
In December 2011, when the crisis had shut Italian banks out
of international capital markets, the government provided a
state guarantee on bank bonds so that lenders could use them as
assets to borrow from the ECB at two extraordinary liquidity
tenders in late 2011 and early 2012.
With funding conditions improved after the crisis receded,
some Italian banks have been repaying the emergency loans from
the ECB and reimbursing the state-backed bonds.
Italy's biggest bank by assets UniCredit said last
week it would cancel 10 billion euros in state-guaranteed bonds.
($1 = 0.7336 Euros)
(Reporting by Valentina Za; Editing by Mark Potter)