FX.co ★ Italy to renew state guarantee scheme

The Italian government plans to tighten a state guarantee scheme. The new measures are taken to protect investors in the banking sector.

Bloomberg reports that they will replace the previous guarantees of bad loans securitization (GACS) which expired on March 6. Banks and financial institutions will be able to use the service upon request.

The new measures will also have to be approved by the European Commission. The rules for the provision of state guarantees will be included in the package of measures to stabilize the Italian economy and overcome the risks related to the withdrawal of the UK from the European Union (Brexit).

Despite the fact that in recent years the amount of bad bank loans has been decreasing, it still exceeds 200 billion euros.