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Mps, all about the NPL portfolio with public guarantee

12 March, Startmag

Also Mps is aiming at Gacs to dispose of its NPLs. It will be the biggest operation ever carried out on the Italian market. Let’s see Gcas more in detail, which are the operations already concluded and those in the pipeline such as the one by Monte dei Paschi di Siena.


This instrument was introduced by the Government in 2015 and it had been already used by Popolare di Bari, Credito Valtellinese and Carige. On 28 February, Bper announced a transfer for 2 billion that should start in the next months, together with the operation of Banco di Sardegna. Whereas Banco Bpm is defining the perimeter of a 5.5 billion securitisation.

The numbers

News on Gacs are coming from Rome and Brussels. Last September the European Commission extended of just one year the Italian scheme for public guarantees, renewing the Mef (Ministry of Finance) decree that introduced Gacs on 16th February 2016 with a maximum duration of 18 months. Hence, September will be deadline to submit to Mef the last Gacs requests. Many banks are applying for Gacs. According to PwC, there are NPLs for 34 billion about to be securitised through Gacs, including Mps (27 billion), Banco Bpm (5 billion) and Bper (about 3 billion).

Rome and Brussels

Due to the regulations from the ECB and the addendum coming up, there are many operations not announced yet but about to be launched, with Intesa Sanpaolo, Bnl, Creval among the banks. However, this doesn’t mean that all the requests will be approved. In some cases, the tranching process of NPLs is not concluded yet and the rating agencies have to finish their work first.

What says Il Sole 24 Ore

Due to the renewed interest for Gacs by several banks, and the risk to not meet the given deadline, the Ministry of Finance is evaluating the possibility to extend the use of Gacs for another year at least. The matter hasn’t been discussed with Brussels yet, mainly because the decision will be up to new Government.

The Mps dossier

The Mps management has evaluated the possible reduction of the transfer price for the portfolio. In fact, the stock should have been initially sold at 21% of its nominal value, but after the completion of the due diligence, the bar had been lowered by several points.

The info from Milano Finanza

Why? As Milano Finanza wrote: “The contraction of the portfolio to securitise, originally amounting to 26.1 billion, has dropped to 24.6 billion, according to the latest estimations. In fact, Mps had to exclude from the portfolio 1.3 billion of subsidised loans or guaranteed by Confidi (the Italian association for collective guarantee of credit lines) which, without a guarantee, turned out having little value”.

The perimeter

The variation of the perimeter has reflected on the price, even though the value is not definitive yet. It will take the rating from the agencies that should disclose it by the end of the month. Moreover, we must remember that the creation of the loan data tape and of the business plan (which is basically a detailed picture of the portfolio and of the collection curves) has taken several months due to the significant dimensions of the stock. Once obtained the rating, the application for Gacs on the senior tranche can start in April, while its placement is expected in May, slightly ahead of schedule.

Source: Startmag

Translator: Cristina Ambrosi

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