Bad Bank, the EU ‘confident’ on the go-ahead. “But do not pay citizens’ – BBC

MISSION IN ROME

Milan , Sept. 10, 2015 – 15:34

     
     
 

marks a step forward for the whole process construction of the “bad bank”, the tool that should buy non-performing loans by Italian banks by allowing them to recover assets so as to expand lending to the real economy. This morning, the EU Competition Commissioner, Margrethe Vestager, at a hearing the commission Industry Activity

Il EU Competition Commissioner, Margrethe Vestager (Reuters)

production and Policies EU combined House and Senate said it was “confident” that can be found with the Italian authorities a solution on the bad bank . Commissioner for the transfer “of loans to someone who can handle it allows the banking sector to go ahead to issue credit to those healthy companies that create jobs we need.” Bad banks were created in several countries but each country must find its own solution because the loans are not stranded in the same sectors in all Member States. In Italy they are scattered in many areas and this complicates a solution. ”

However, the Danish Commissioner is not skewed on the timing. The table is opened by time and entered into the heart of the technical aspects, confirmed a statement from the Ministry of Economy after Vestager had an interview with the minister

Pier Carlo Padoan, Minister of Economy (Frame)

Pier Carlo Padoan, during the mission in Rome that led also to meet with the Minister of Productive Activities, Federica Guidi, the Secretary for European Affairs, Sandro Gozi, the president of the Antitrust, John Pitruzzella. “The bad bank can be made with or without state aid,” said Vestager. “It is up to Italy choose the mode. We do our best to give input. In the time it is set up a bad bank that will give advantages to certain banks should be subject to the condition of restructuring because we are using taxpayers’ money, “he explained. So the decision is up to Italy, which still is seeking a “market solution” to the bad bank, to avoid therefore state aid if there were in fact the new rule would take effect “on bail” for institutions advantage, ie a rescue mechanism that involves a contribution by bondholders and also of the depositors (over 100,000 Euros of deposits) of the bank receiving the aid.

“We’d like to avoid that they are taxpayers’ pay, said Vestager. “If you transfer a loan that is not paid to someone who can take on more risk – he said – then the cost increases and the price must be assessed at market value. If not at market value someone has to pay (the difference, ed ) and that someone should not be the taxpayer. ” As “positive notation” Vestager stressed that “there is a slow but sure development of a market for substandard loans. The largest banks are starting to buy these loans stranded then gradually fixed a market price for these loans stranded and then somehow you restore a market economy. “

The reforms put in place by our country, from the labor market to the school, will help growth. This is the message that the EU Competition Commissioner, Margrethe Vestager, handed over to the Italian Parliament at a hearing of the committees on Industry, Production Activities and Policies EU House and Senate. Italy has done and is doing “major structural reforms” which “will enhance the growth potential of the Italian economy,” began Vestager. “From the market work at the school, to public employment in the banking sector. Are reforms that will strengthen the growth potential of the Italian economy and favor the perspective important for every citizen to have access to education, find a job, start a business and to take care of his family. ” In the European economy in general there are “encouraging signs of economic recovery, things are better, but not enough.” “We are in a situation of great stress for Europe in terms of investment and employment and therefore the competition plays an important role. We have a duty to improve and revitalize the economy, competition rules can do much. ”

In a statement, ilministero Economy explained that the meeting Vestager-Padoan “I We were assessed positively the progress on the various file shared between the two institutions, and in particular those relating to the management of non-performing loans, the transposition of the Directive on the recovery and resolution of banks in general and the management of banking crises and the role that they can have the Deposit Guarantee Fund. ” Padoan and Vestager also had an exchange of views on the company’s turn-around being set up by the Italian Government. “The strong commitment of the government to encourage the opening of markets through the draft bill competition ‘was illustrated by the minister Federica Guidi Vestager during a meeting today at the Ministry of Economic Development, who also addressed the energy dossier, ultra-wideband , Post and Ilva, is indicated in a note from the ministry.

September 10, 2015 (modified September 10, 2015 | 15:47)

© PLAY RESERVED