Mps, EU go-ahead to bad bank for impaired loans


MILAN – Mps highlighted on the stock exchange (follow live) on European developments on the creation of a bad bank for the separation of bad credit.The EU Commissioner for Competition, Margrethe √¨Vestager indicated that she had “given comfort to the Italian authorities” on the creation of a bad bank in which to bring together a part of the MPS credit. Therefore, the Commission has no problem with this solution. “There are contacts in progress, from what we can see it is not a (public) aid operation and it was decided before the coronavirus crisis: it is up to each state to decide whether to notify or not, so far Italy has not made a notification”.

Mps, the first step towards the sale. But the 2017 commitments with Brussels are all to be redone

“One of the bank’s commitments is that it will eventually be sold,” Vestager remarked to those who asked her if she had a comment on the rumors about a possible stay of the state in MPS. The Commission is “in contact with the Italian authorities” on the transferred assets “and as far as we can see it does not involve aid, it was decided before the Covid crisis”, he explained.According to Equita, the operation on the bad bank “based on our calculations to reduce the Npe ratio of Mps from 13.2% recorded at the end of the first quarter to 2.1%. Analysts, in terms of capital requirements, recall how, following the EU approval of measures to support the economy in the current Covid 19 emergency, the government could actually recapitalize the bank by 31 December 2020 without resorting to the so-called ‘burden sharing’ of the shareholders or subordinated creditors “by bringing Cet1 back to a level well above buffers”. The operation “would make MPS more attractive from an M&A perspective, favoring an exit strategy of the MEF, even if the possibility that the government could aim is not excluded in full control to complete the exit in longer times “.

After Vestager’s words, Monte dei Paschi issued a note stating that the partial split of a “compendium”, made up of, among other things, a large portion of impaired loans “is being studied and is underway. discussions with supervisors “. “Following the informal go-ahead by the European Commission, therefore, discussions were initiated with the European Central Bank and Consob regarding the definition of the authorization profiles for the start of the operation. Finally, it is specified that further investigations are underway regarding the composition of the compendium which, at the date of this press release, have not been completed “.

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