BRUSSELS, July 11 (Reuters) - Italy’s troubled banks do not represent an acute crisis and resolving their problems will be more of a gradual process than a big fix, Eurogroup President Jeroen Dijsselbloem said on Monday.
Bank of Italy’s Governor Ignazio Visco said on Friday that public money should be used to help Italy’s troubled banks in a financial system that was “full of risk”.
“Yes, there are issues of non-performing loans in Italian banks, but that’s not a new issue,” Dijsselbloem said before a meeting of the Eurogroup of euro zone finance ministers, which he chairs.
“It needs to be dealt with, it will have to be dealt with gradually. There will be no big solutions. I don’t think that’s possible for this kind of issue and it’s not an acute crisis.”
The European Union had clear rules on how to deal with banks facing difficulties and there was only a limited role for the Eurogroup.
“There is not much we can do,” he said. “The European Commission and the European banking supervisor has to talk to the Italians using the rules (we have set out),” he added. (Reporting by Robert-Jan Bartunek and Philip Blenkinsop)