The state of alarm of the Veneto banks, which every day have to suffer the flight of savers and which present thrilling balance sheets with losses of one billion and more for each, will be illustrated today by the CEOs of the Popular Bank of Vicenza need Veneto Bank, Fabrizio Viola and Cristiano Carrus, at the ECB in Frankfurt.
To save the two banks, which within the year they should merge, they urgently need fresh money to pay salaries and carry on normal banking activities and ask to be able to start yet another capital increase. This time, however, the lifesaver of Atlas fund, which has already banked out to maintain the minimum capital requirements of the two banks, will not be there.
There will most likely be the conversion of subordinated bonds into sharesbut that won't be enough.
In reality, the Veneto banks are hoping that the European Union will give the green light to theTreasury intervention in their capital, as for Monte dei Paschi and as for banks in difficulty in other countries. However, it is unlikely that a clear signal will arrive today from the ECB, which however in recent days has said it is open to it.
The future of the Veneto banks is in the hands of the European Commission and it is up to Brussels to say yes or no to state intervention. So we will arrive after Easter.
Read also "Popolare Vicenza and Veneto Banca: over 70% of reimbursements".
