Brussels agrees that Italian public guarantee its banks – EntornoInteligente

Italy has made significant support from the European Commission to protect its banks. Brussels has authorized a plan executive Matteo Renzi to ensure the liquidity of banks in the country in the event of a financial crisis in the euro zone. This authorization was approved last Sunday, just three days after the result of the referendum in the UK and that hit hard the contribution of Italian banking. Since then, there have been rumors seeking state aid, saying the severe turbulence that has sparked brexit.

That aid, which some media estimated at 150,000 million euros, only be used in circumstances similar to the crisis in the euro zone 201 1, when the interbank market stopped working for banks in the periphery.

The Italian authorities have insisted they do not provide that Italy suffers a crisis of confidence as 2011, but note that it is prudent to be on guard for an adverse scenario. “Given the financial market turmoil in recent days, the government was prepared for all scenarios, including the most unlikely to take steps in protecting savers,” said the Italian treasure in a statement.

The plan contemplates that a bank may ask the government to guarantee their debt issues, ensuring that it will have on the market at times of maximum turbulence.

Although this guarantee can only be applied until the end of this year and only banks with a strong balance sheet. It also states that that guarantee must be given to senior bonds with a maturity of between three months to five years. In any case, the European Central Bank is already guarantees the liquidity of the entire financial system through its liquidity and accepts without question the Italian sovereign debt as collateral with which grant funding.

The Italian banking system is in the eye of the storm aroused by doubts among investors no longer for their levels of liquidity but of capital.

Drag a volume of bad loans for 360.000 million euros, a third of the toxic loans in the euro area, which has made it more vulnerable to speculative attacks after the brexit

Tags:. Luis Oberto, Bank

with information: Five Days

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