Visco: “Stability and reforms are essential. For development there are no shortcuts” – the Newspaper

Stability and support for reforms are “essential elements for development, there are no shortcuts”. It is the recommendation of the governor of the Bank of Italy, Ignazio Visco, on the state of the economy confirms a gradual growth, of 1% on average a year by 2019, but cautioned that “the scenario is subject to risks”.

According to Visco, who spoke yesterday at the congress Assiom Forex in Modena, “second thoughts, delays, resistances – which are not lacking in some industries, including banking – at risk of have an impact on the conditions of the market, nullifying the progress made during the long crisis from which, though slowly and with difficulty, we are leaving”.

in order not To compromise the growth scenario, he warns, therefore, “should not be underestimated the consequences of an increase in the uncertainty about the political determination in the pursuit of an essential strategy of modernisation”. Visco in his speech, not to speak of public accounts, in the light of the latest demands from Brussels, and when he speaks about the banks, unable to face each other Intesa-General. He claims, however, the role played in managing the numerous banking crises of the last year, addressed the “constructive” and “transparent” with the participation of a number of instruments, from the recapitalisation public request from Monte dei Paschi, the private funds made for the purchase of suffering and the strengthening of the balance sheet, which is used to Populate Vicenza and Veneto Banca to end up with the four banks in the resolution, for which there was a “sale procedure is open and transparent, have been ev aluated all of the offers readily available, from every operator concerned, in italy and abroad”.

Also on the theme of the suffering we see positive signals, with the flow of new impaired loans, in 2016 fell to the lowest level since 2008, while the stock last June amounted to 191 billion euro, with recovery rates of 43%, according to the average for 2006-2015.

The management of these sufferings “it should however be approached with care – and feel – a large part is owned by banks in good financial condition who do not need to sell immediately in the market”. Intermediaries are more problematic, instead, “get rid of the lost of suffering inherited from the past is a necessary condition for the revival of the activity”.

In this regard, Visco called on Europe “an important contribution, a measure that will eliminate the disincentives to the sale of loans deteriorated for the banks that have advanced models for credit risk assessment”.

the credit institutions must do their part on a number of fronts: the challenge of technology that forces a “rethinking of branches and staff, restructure, join together to save costs.” The capital is remunerated adequately to be able to find it on the market quickly, in Italy and abroad. Thing that now it is not and not only for the interest rates to zero of the Ecb.