ROME/MILAN The Italian state will pay 5.2 billion euros ($5.8 billion) to wind down two ailing Veneto-based banks and transfer their good assets to Intesa Sanpaolo (ISP.MI), but the final cost for the state could rise to up to 17 billion euros.
Explaining the deal in a press conference on Sunday, Economy Minister Pier Carlo Padoan said that on top of the 5.2 billion euro payment, the state will offer additional guarantees for up to 12 billion euros to cover for potential losses stemming from a due diligence of the two banks' bad and risky loans.
(Reporting by Steve Scherer and Silvia Aloisi)
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Published Date: Jun 26, 2017 12:00 am | Updated Date: Jun 26, 2017 12:00 am