MILAN, March 14 UniCredit is prepared
to spend up to 10 billion euros ($14 billion) to take on
payments owed to companies by Italy's public administration, the
bank's chief executive said in a newspaper interview on Friday.
"We have up to 10 billion euros for these operations,"
Ghizzoni told Italian newspaper La Repubblica, adding that the
public administration would have to confirm the validity of the
claims before the country's biggest bank by assets took on the
The Italian state owes some 68 billion euros to private
companies, which has starved firms of cash and triggered
layoffs, factory closures and even bankruptcies.
Ghizzoni said UniCredit, which posted a record 14 billion
euro loss earlier this week due to huge writedowns
expects to have a Basel III Common Equity Tier 1 capital
adequacy ratio of 10 percent of risk-adjusted assets in 2016.
The bank said in presentation slides on its 2013-18
strategic plan that it was aiming for a ratio of 10.4 percent in
Ghizzoni also said the bank had set aside provisions worth
600 million euros to cover its exposure to crisis-hit Ukraine.
($1 = 0.7180 euros)
(Reporting by Isla Binnie; Editing by Greg Mahlich)