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Italy government wins confidence vote on Veneto banks

Published 07/12/2017, 10:04 AM
Updated 07/12/2017, 10:10 AM
© Reuters. A Banca Popolare di Vicenza sign is seen in Rome
ISP
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ROME (Reuters) - The Italian government won a parliamentary vote of confidence on Wednesday on its plan to wind down two troubled local banks in the northern Veneto region.

The lower house Chamber of Deputies voted 318 in favor and 178 against. The measure now goes to the upper house Senate for final approval before it becomes law.

Last month, the government approved an emergency decree handing over the best assets of the two banks - Banca Popolaredi Vicenza and Veneto Banca - to Intesa Sanpaolo (MI:ISP), while their soured debts will be transferred to a bad bank.

According to the text of the bill submitted to parliament, the state expects to recover 9.9 billion euros ($11.30 billion)from a total of 17.8 billion euros of gross soured debts it is taking on as part of the deal.

© Reuters. A Banca Popolare di Vicenza sign is seen in Rome

Another 1.7 billion euros should come from the sale of financial stakes held by the two banks, the document said, bringing total expected proceeds to 11.6 billion euros, compared to 10.9 billion euros of funds committed by the state.

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