Italy Asks EU to Extend Guarantee That Helped Banks Cut Bad Debt
- Italian Finance Minister Tria comments in an interview
- Tria says GACS program is ‘working well’ and helping banks
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Italy has asked European regulators to extend a state loan-guarantee plan that has helped its banks put a dent in Europe’s biggest pile of non-performing loans.
The Treasury under the previous government of Paolo Gentiloni had already signaled its intent to seek an extension to the plan, which expires on Sept. 6. The program allows banks to bundle their bad loans into securities for sale, while purchasing a state guarantee for the least-risky portions in order to make the debt more appealing to investors.