The prospect of bail-ins is looming
for troubled lenders Popolare di Vicenza and Veneto Banca after
European competition officials on Wednesday confirmed demands
for greater private involvement in recapitalizations at a
meeting.
Shareholders in the two medium-sized Veneto-based banks lost
their investments last year when they were rescued by
State-sponsored, privately-funded bailout fund Atlante.
The economy ministry said Thursday that the government was
in talks with the European authorities to reach a solution that
"guarantees the stability of the two Veneto banks and safeguards
savers completely, fully respecting European rules".
The ministry released the statement after Economy Minister
Pier Carlo Padoan met the heads of the two banks.
The statement stressed that "in terms of liquidity, Banca
Popolare di Vicenza and Veneto Banca have all the necessary
public guarantees".
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