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Italian state estimates could gain 700 mln euros from Veneto banks deal over time
June 27, 2017 / 1:47 PM / 5 months ago

Italian state estimates could gain 700 mln euros from Veneto banks deal over time

ROME, June 27 (Reuters) - The Italian state estimates it could end up gaining 700 million euros ($790 million) following the winding down of two ailing regional banks with taxpayer money, according to a proposed legislation detailing the plan.

The government approved an emergency decree on Sunday handing over the best assets of the two banks - Banca Popolare di Vicenza and Veneto Banca - to Intesa Sanpaolo, while their soured debts will be transferred to a bad bank.

The decree must be converted into law by parliament within 60 days.

According to the text of the bill submitted to parliament, the state expects to recover 9.9 billion euros from a total of 17.8 billion euros of gross soured debts it is taking on as part of the deal.

Another 1.7 billion euros should come from the sale of financial stakes held by the two banks, the document said, bringing total expected proceeds to 11.6 billion euros, compared to 10.9 billion euros of funds committed by the state.

$1 = 0.8861 euros Reporting by Giuseppe Fonte, writing by Silvia Aloisi

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