ROME, April 9 (Reuters) - Italian banks are expected to tap a recently renewed state guarantee scheme to shed some 10 billion euros ($11 billion) in bad loans over the next two years, a senior Treasury official said on Tuesday.
Giuseppe Maresca told a parliamentary hearing the scheme, dubbed GACS, had so far helped banks sell around 62.1 billion euros in bad loans repackaged as securities with state guarantees provided on some 11.7 billion euros of notes.
“We expect in the next two years another 10 billion euros of bad loans to be sold under the GACS scheme, with the guarantee wrapping around two billion euros of notes, this is roughly our forecast,” he said.
Italy has recently renewed the GACS scheme for another two-to-three years, tightening its requirements after data showed recoveries on some of the GACS-backed issues were lagging business plans. ($1 = 0.8874 euros) (Reporting by Angelo Amante, writing by Valentina Za,)