21 May, Starmag
It might be bad news for banks. If the public guarantee on securitisations is not extended, a large part of the Italian banks will have to review their strategies concerning the NPL disposal, with bigger estimated losses.
The reasons for the extension
There have been about a dozen securitisations so far and just a few will be concluded by September. Not only because banks acted slowly, having planned the issuance only at the beginning of the year, but also because the rating agencies and the offices of the Ministry of Treasury are overworked due to the huge number of documents received in the past few weeks.
That’s the reason behind the request to extend the deadline of 6ht September at least by four/six months. In theory, this wouldn’t be an issue and, according to Milano Finanza, the green light from the European Commission might arrive by the end of May.
What the Treasury will do
At that stage, however, the Ministry of Treasury should intervene with a ministerial decree to renew and extend the guarantee also to unlikely to pay and leasing, but it’s not to be taken for granted that this will happen. The Government that is currently forming in Rome doesn’t seem prone to approve such a measure which, from a populist point of view, might be interpreted as a favour to banks.
There will be serious consequences for the banking sector if the guarantee is not extended. In fact, Gacs allow the banks to get rid of bad loans at considerably higher prices compared to the average on the market. This is because the senior tranche can be placed on the market with Italy’s rating.
The Gacs map
This is an opportunity that many banks have taken, especially in the recent months. The list is getting longer, and it goes from Banco Bpm (5.1 billion) to Bper (2 billion), from Ubi Banca (3.5 billion) to Creval (1.7 billion), including smaller banks such as Banco Desio, Cassa di Risparmio di Asti, Popolare di Ragusa and Iccrea.
Translator: Cristina Ambrosi