Italian banks State bonds set to fall sharply-Patuelli

Institutes must prepare to return ECB loans

(ANSA) - Rome, June 25 - The stock of Italian State bonds held by Italian banks is set to start falling sharply from January, the head of the Italian banking association (ABI), Antonio Patuelli, told an ANSA Forum Tuesday.
    "From January it is very likely that the total of Italian State bonds" in possession of Italian banks "will fall significantly", he said.
    This is because, he said, the institutes will have to start giving back European Central Bank loans.
    The acquisition of State paper, Patuelli observed, also represents "liquidity parking for the banks".
    He said "I give you early warning, let's not be amazed if in January there is a strong drop.
    "I someone has to return a loan he must prepare beforehand".
    Patuelli added that from 2015 to today Italian banks had spent almost 13 billion euros for rescues.
    He said "we are continuing to give because the authorities are imposing another instalment for 2019, always stemming from past rescues".