Banks, repayments of up to 80% to low-income bondholders

The bondholders of the 4 banks in crisis will be reimbursed up to 80% without the need for arbitration if they have an annual gross income of less than 35.000 euros or if their movable assets are less than 100 euros: this was established by the Council of Ministers which also decided to accelerate debt collection from the companies in 6-8 months - Gabrielli new head of the Police, Pansa to the secret services and Toschi new commander of the Guardia di Finanza.

Banks and appointments at the center of the meeting of the Council of Ministers.

DEBT RECOVERY – The long-awaited definition of the repayment criteria for the subordinated bondholders of the 4 banks in crisis and rescued at the end of 2015 by the Government (Banca Popolare dell'Etruria e del Lazio, Banca delle Marche, CariFerrara and CariChieti) is the heart of the new decree on banks. The novelty is represented by the possibility for the bondholders of the 4 banks to be reimbursed up to 80% of the sums lost without resorting to arbitration if their gross annual income is less than 35 euros or if their movable assets do not exceed 100 thousand euros. The lump-sum refund is valid for those who bought bonds from the 4 banks before 12 June 2014.

DEBT RECOVERY in 6-8 MONTHS – Another very important measure of the bank decree provides for the possibility of recovering credits to legal entities faster in 6-8 months compared to the current 6-8 years. Nothing changes for the credits of natural persons except for the contracts entered into by individual banks with their customers.

BANKING PERSONNEL FUND – Finally, the decree on banks establishes a Solidarity Fund for the professional reconversion of credit personnel and establishes new financial provisions on DTA activities (deferred advance taxes). "This decree - commented Prime Minister Matteo Renzi - aims to resolve the problems of the banking world in Italy in a definitive way, I hope"

APPOINTMENTS – The Council of Ministers has also taken very important decisions regarding public appointments: the prefect Franco Gabrielli is the new Chief of Police; General Giorgio Toschi is the new commander of the Guardia di Finanza; the former Chief of Police, Alessandro Pansa takes over the leadership of the secret services (Aisi) in place of Ambassador Giampiero Massolo, destined for Fincantier; General Valter Girardelli is the new Chief of Staff of the Navy.