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Government pressing EU for a solution on recapitalization of two Veneto banks

The government continues to put all its efforts into negotiating with the EU authorities for finding a solution for therecapitalization of Veneto Banca and Banca Popolare di Vicenza.

It confirms its goal of getting the EU authorities to re-think their request that private investors put €1 billion into the two banks as a condition for the green light for state investment.

With two quasi-photocopy press releases, the Veneto bank's board of directors closed their extraordinary meetings yesterday, “taking note of the reassurance” that came from the Economy Ministry, according to Popolare di Vicenza, “that allows us to trust in the rapid conclusion of the authorization process for recapitalization.” 

Veneto Banca's position was slightly more nuanced, expressing “appreciation for the commitment expressed” by Economy Minister Pier Carlo Padoan “for a successful solution to be reached quickly,” recalling that this move is “essential to the success of the actions envisaged” for the two banks to merge.

Meanwhile private investors continued to reiterate their unwillingness to take part in the recapitalization of the two banks.

Italian banking foundations will not help refinance the troubled banks Veneto Banca, Popolare Vicenza, said Giuseppe Guzzetti, head of the banking foundation association Acri and the foundation Fondazione Cariplo.

“The foundations have already contributed” to recapitalizing Italian banks, Guzzetti said in a radio interview. When asked if the foundations could inject financial resources in the Atlante rescue fund, which already controls the two banks, Guzzetti said “absolutely no. We won't put one euro.”