MILAN Feb 11 Italy's top two banks UniCredit
and Intesa Sanpaolo are discussing plans to
deal with their restructured loans, the head of UniCredit said
on Tuesday, as the banking system strives to tackle its large
stock of problem loans.
CEO Federico Ghizzoni confirmed ongoing talks on
restructured loans with Intesa, after a source said last week
the two banks were in contact with U.S. fund KKR about
setting up a vehicle to hold some of their restructured loans.
Ghizzoni did not give any details but said a decision had to
be taken by mid-2014.
He said he had not discussed the option of a systemic "bad
bank" to hold lenders' bad debt with Prime Minister Enrico Letta
and had not heard any talk concerning this or the possibility of
public guarantees to help bank offload bad debt.
"These could perhaps be solutions that are useful for banks
with a different size (than ours), we think we can manage on our
own. If there are any proposals we will listen to them," he told