The Venetian banks ended up on the table of the Council of Ministers, which, in the usual Friday meeting, approved a emergency intervention to suspend the payment of the subordinated bond of Veneto Banca due on June 21st. According to a source close to the dossier, reported by Reuters, the move by the Executive is preparatory to the solution being negotiated with the European authorities for the rescue of Veneto Banca and Popolare di Vicenza on which work will continue in the next few hours .
A suspension of the repayment of the Veneto Banca bond structured as follows noon would be a default event because it would not be a decision of the bank but of a third authority in the context of a state aid negotiation, explains the source. On the other hand, any reimbursement could create legal problems for the institution's board of directors in view of a possible burden sharing that would involve the other subordinates.
Veneto Banca's XNUMX-year lower Tier II bond maturing next week has been issued for a nominal amount of 150 million euros, while the outstanding is 86 million.
Economy Minister Pier Carlo Padoan today reaffirmed his confidence in a positive solution in the short term to the whole affair involving the Veneto banks. We will see.
