(Reuters) - The House has finally approved the decree governing the precautionary recapitalization of banks in crisis, starting with MPS.
On Twitter, Prime Minister Paolo Gentiloni writes that the provision is a "step forward to guarantee more economic security for families and businesses".
Parliament approved decree #savesavings A step forward to ensure more economic security for families and businesses
- Paolo Gentiloni (@PaoloGentiloni) 16 February 2017
Mps needs 8,8 billion on the basis of the capital requirement calculated by the ECB and the forced conversion of subordinated bonds into shares ensures 4,3 billion, the so-called 'burden sharing'.
The Ministry of the Economy will put the remaining 4,5 billion on the plate plus another 2 billion to compensate savers holding bonds.
There are high possibilities that the State will also have to intervene in support of Veneto Banca and Popolare di Vicenza for a similar precautionary recapitalization, said today in an interview the CEO of Vicenza and president of the strategic committee of Veneto, Fabrizio Viola. According to two sources close to the dossier it is a 5 billion operation.
Here are the main novelties of the decree.
