Italian Finance Minister Pier Carlo Padoan and Governor IgnazioVisco on April 5 met with chief executives of , and todiscuss the creation of a state-backed fund that will buy bad loans and helpplug capital holes at troubled banks, Reuters reported the same day, citing"three sources close to the matter."
State lender Cassa depositi e prestiti SpA and a representative ofbanking foundations also reportedly attended the meeting.
The fund would be majority owned by private investors andwould aim to meet EU state aid rules."The idea on the table is a vehicle including CDP, the bankingfoundations, investment funds, pension funds and other private investors,"one of the sources said.
No agreement was reached at the meeting and the parties areexpected to meet again soon to discuss the matter, the newswire added.
It is unclear how big the fund would be, how it wouldoperate, and whether it would buy banks' nonperforming loans or help themrecapitalize, the source said, adding that the officials are not likely toreach a firm accord in time for Banca Popolare di Vicenza SpA, which is set to conduct a€1.75 billion rightsissue and list on the market by April-end to comply with ECBrequirements.