Italy will allocate the bailout of 20 billion euros

Италия выделит на спасение банков 20 миллиардов евро

The main entrance of the world’s oldest Bank Monte dei Paschi di Siena

By the decree of the government of Italy approved a package of urgent anti-crisis measures.

The Italian government approved a package of urgent anti-crisis measures amount to 20 billion euros to rescue the banking sector. Prime Minister Paolo Gentiloni announced the adoption of a government decree on the night of Friday, December 23.

According to the decree of the government, significant funds will be directed on prevention of bankruptcy and a guarantee of depositors ‘ funds in Italian banks suffering from the credit crisis. The total volume of overdue loans reached 360 billion euros, which is roughly equal to a quarter of the GDP of Italy.

The crisis in the most affected, founded in 1472, the Bank Monte dei Paschi di Siena (BMPS), considered the oldest Bank in the world. If by the end of this year will not be able to conduct recapitalization in the amount of 5 billion euros, the Bank may burst. The adoption of anti-crisis package, in fact, a nationalization of BMPS. The crisis also affected the big banks Unicredit and Intesa SanPaolo and a number of other financial institutions.

The banking crisis in Italy has been developing since July, when it became aware of the requirement of the European Central Bank (ECB) to BMPS significantly reduce the amount of “bad” loans. Public debt Italy has over € 2.2 trillion and reached a record 133% of GDP.

We will remind, on December 21, the Italian Parliament approved the government’s plan to rescue the country’s banking system.

According to the materials:
Russian service DW
RIA Novosti