UniCredit CEO Federico Ghizzoni on
Thursday confirmed the bank will commit one billion euros to the
new Atlante fund to aid troubled Italian lenders.
"We intend to remain in the fund for the expected five
years, with the possibility of renewing our commitment for
another three years," Ghizzoni said.
Atlante was set up by the Cariplo Foundation and Quaestio
capital management firm in a bid to shore up ailing Italian
lenders while avoiding violating EU rules against State aid.
Cariplo Foundation President Giuseppe Guzzetti said the new
fund will put an end to what he called a speculators' "bonanza"
in snapping up Non-Performing Loans (NPLs) at as much as 18-20%
interest.
The financial industry approved a government-backed plan
Monday to set up the privately financed fund to buy up shares in
struggling Italian lenders and to take on their NPLs.
Also on Thursday, IMF Managing Director Christine Lagarde
said Atlante showed "an interesting approach, limited in scope
and amount, but interesting".
Bad loans are a legacy of the financial crisis, she said,
and Italian authorities have recognised it is a problem that
must be addressed.
Economy Minister Pier Carlo Padoan told America's CNBC that
the creation of the fund was not a "bailout", but a "private
sector" initiative that aimed at "jump starting" the market for
non-performing loans.
ALL RIGHTS RESERVED © Copyright ANSA