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Mps awaiting EU decision on a possible NPL spin-off

09 October, Il Sole 24 Ore

The Italian Ministry of Treasury is currently exploring the possibility of a spin-off of Mps NPLs for 10-14 billion euro. The decision from the EU is expected before the end of the year, when the Italian Government will have to communicate how it will dispose of 70% of the Mps capital by 2021. According to the EU advisor Oliver Wyman, the operation, if carried out at book values as suggested by the Italian Ministry instead of market values, will have an impact on competition.

Another possibility would be the spin-off of just 70%-80% of the whole NPL and UTP stock, bringing the Mps Npe ratio at 5%. Such a reduction would make the bank more attractive for investors, facilitating the exit of the Government from the capital by 2021.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi