Atlante to set up NPL fund (2)

(ANSA) - Milan, June 30 - The Quaestio private investment firm is weighing whether to split the activities of its new Atlante fund in two with a new half that would be wholly devoted to non-performing loans (NPLs), sources told ANSA Thursday. The first half, worth 2.5 billion euros, would deal with saving two Veneto banks, while the second half managing the NPls would be worth 1.75 billion euros. The operation would require another 3-5 billion euros, with the Treasury chipping in some 500 million euros, the sources said while government bank Cassa Depsiti e Crediti would contribute some 700 million. Italian banks are weighed down by NPLs and the government has been considering ways to help them out. German Chancellor Angela Merkel has ruled out changing a new bail-in mechanism to allow for limited State aid because of the financial shock from Brexit.