December 21, 2018 / 12:14 PM / in 3 months

Italy's bad bank to sell 314 mln euros of loans for Banca del Fucino

Dec 21 (Reuters) - Italy’s bad loan manager SGA said on Friday it had made an offer to take on 314 million euros worth of non-performing loans from Banca del Fucino and package them up for sale.

State controlled SGA acts as a bad bank which takes on problem loans from the country’s banks, which piled up during a deep recession following the euro zone crisis.

Last month, the Bank of Italy said bad loans on Italian bank balance sheets fell to their lowest level in about six years in September.

SGA will create a so-called securitisation portfolio from Banca del Fucino’s bad loans, which will consist of 211 million euros ($241.05 million) in bad loans and 103 million euros are unlikely-to-pay and past-due loans. In a securitisation, bundles of loans are turned into securities that can be sold to investors.

Banca del Fucino, the oldest bank in Rome, is active in the central Italy in the regions of Lazio, Abruzzo and Marche and is soon to merge with another, much younger, Rome-based bank, Igea Banca. The bad loan manager expects to finalise the operation in the first quarter of 2019.

$1 = 0.8754 euros Reporting by Silvia Recchimuzzi in Gdynia. Editing by Jane Merriman

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