Gentiloni defends Veneto banks move (2)

(ANSA) - Rome, June 26 - Premier Paolo Gentiloni on Monday defended the government's intervention for the two troubled Veneto banks as "not just legitimate, but also dutiful". He said the move was "certainly not for those responsible for the collapse, but for others - two million clients, the small and medium-sized enterprises, the regional economy".
    On Sunday the European Commission said it had approved Italian measures to facilitate the liquidation of BPVI and Veneto Banca. "Italy considers that State aid is necessary to avoid an economic disturbance in the Veneto region as a result of the liquidation of BPVI and Veneto Banca, who are exiting the market after a long period of serious financial difficulties," said Competition Commissioner Margrethe Vestager. "The Commission decision allows Italy to take measures tofacilitate the liquidation of the two banks: Italy will support the sale and integration of some activities and the transfer of employees to Intesa Sanpaolo. "Shareholders and junior creditors have fully contributed, reducing the costs to the Italian State, whilst depositors remain fully protected. "These measures will also remove 18 billion euros in non-performing loans from the Italian banking sector and contribute to its consolidation".