July 8, 2016, 15:30 Rome, July 8 (PL) The Governor of the Bank of Italy, Ignazio Visco, today called public support to prevent the collapse of financial system in the country, exposed to greater dangers due to the effects of Brexit.
Although experts note that the turbulence is of long standing, the official featured a “full risk” scenario, following the decision of the UK to leave the European Union (called Brexit).
Speaking at the annual meeting of the Italian banking Association, Visco said risk aversion linked to Brexit direct impact on the price of the Italian banks, whose fall in the stock market was 29 percent, compared to a drop of 21 percent of European banks.
According argued, “the current situation, full of risks to financial stability, requires the willingness of public support to be activated in case of need.”
“the problem of bad loans Italian banking is serious, but can be managed, “said the manager, who considered encouraging signs by reducing the level of nonperforming loans
Analysts warn that the crisis could spread throughout the continent.; to the phenomenon the European Union (EU) authorized Roma granting government guarantees for 150 billion euros in 2016.
According to EU rules, public money can not be intended to solve the financial problems of banks; however the European Commission authorized the operation to maintain liquidity and try to avoid greater evils.
According to the vice president of the International Finance Centre, Stanislaw Werner, “Italian banks became zombies who are only able to survive with the help of the government. “
Quoted by Russian online newspaper Vzglyad, the analyst said a collapse of the financial system would collapse the country and drag to the crisis the rest of Europe.
to / mjm
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