TheItalian government and banks in the country have reached an agreement to set upa privately funded investment vehicle aimed at helping troubled banks shore upcapital and unload bad loans, Bloomberg News reported April 11.
CEO Alessandro Vandelli said the fund, which will be namedAtlante, will be worth approximately €5 billion.
Italianasset manager Quaestio Capital Management SGR, the fund's manager, said Atlantewill act as a buyer of last resort and will purchase the riskiest chunksof certain banks' nonperforming loans as well as help them with their stocksales, Bloomberg added.
Oneof the investors, state lender Cassa depositi e prestiti SpA, will contribute up to€300 million to the fund, with the bulk of the investment expected to comemostly from Intesa SanpaoloSpA and UniCreditSpA, as well as insurers and asset managers, Reuters reported thesame day, citing "a source familiar with the fund."
ItalianPrime Minister Matteo Renzi said the government will in the coming daysintroduce measures to accelerate bankruptcy procedures and loan recovery,Reuters added.