Padoan 'perplexed' by new EBC rules (4)

(ANSA) - Luxembourg, October 9 - Economy Minister Pier Carlo Padoan said Monday that he had doubts about the European Central Bank's new rules on non-performing loans. "It's clear in Italy there is a problem with reducing bank bad loans," Padoan said on his way into a Eurogroup meeting. "It is clear that this process has started and is going in the right direction at increasing speed. "So we are satisfied about this.
    "I have perplexities about the method and content of the communication put under discussion by the Single Supervisory Mechanism (SSM). We will discuss it in the coming weeks".
    Under the new rules, the ECB will ask lenders to put aside more cash to cover newly classified bad loans from next year.
    The president of the European Banking Association, Andrea Enria, told the European Parliament Monday that the principle of the new rules "is not wrong, but it is right to see how it is applied in practice". Industry Minister Carlo Calenda said the new rules would risk hitting small and medium-sized businesses.
    He vowed: "we will fight a battle in Europe".