A plan to avoid the collapse of the San Marino Savings Bank (Carisp) which seems to be getting closer day by day. The Government delegation has announced its intention to carry out a "truth" operation, undertaking a series of extremely harsh measures. We will go from the liability action against the former directors to an injection of liquidity that will allow the bank to be recapitalized up to the separation of negative and positive assets.
We are therefore moving towards a bad bank which seems to be the last resort for the San Marino financial system given the almost 2 billion in non-performing loans and the 537 million in losses recorded by Carisp in the 2016 balance sheet. In September 2016, the bank was even under the magnifying glass of the International Monetary Fund who had spoken of 2 billion Npl, most of which without guarantees, of real estate origin and created by Italian customers, attributable to a single bank: the Cassa di Risparmio, which after repeated recapitalizations, is now de facto in public hands. The local government is in fact the majority shareholder of the first San Marino institution which therefore needs urgent intervention aimed at reorganizing the accounts and saving what can be salvaged.
The Secretariat of State for Finance and the Budget led by Simone Celli has announced that it has made a commitment to adopt “all legislative and institutional acts so that coverage of the Cassa's financial needs in terms of liquidity and capital is fully guaranteed".
Harsh words against the administrators. The investigation requested by BCSM "has made it possible to highlight how much the management of the bank in recent years has been not only questionable and superficial but in particular very far from a correct application of the principle of sound and prudent administration which will lead the Government to activate accountability actions towards those who have become accomplices in the current situation of instability”.
Not only that, according to what we read in the note issued on 21 August: "at the same time as the definitive approval of the 2016 financial statements (expected for mid-September) by the shareholders' meeting, the restructuring plan of Cassa di Risparmio will be launched , presumably through the unbundling of the positive and negative assets present in the institution, will lead to the emergence of a wholly state-owned good bank and a bad bank.”
A Spv (special purpose vehicle) will also be set up in order to better manage and collect bad debts (or inaccurate) of the local system.
Based on the intentions expressed, "With an adequate injection of capital by the State, a high-level industrial project oriented towards efficiency and internationalization and a management equipped with high professional and technical profiles, the Savings Bank, purified from all negative assets, will be found in conditions for generating income in the medium to short term and will once again be a tool to support the country's economic growth".
