Finances

VENETO BANCA REGRETS THE FAILURE TO ATTRACT FUNDS FOR COVERING LOSSES

27 june, 2017

During the extraordinary meeting on June 23, 2017, the Veneto Banca, which owns 100% of Moldovan Eximbank, expressed regret that the worsening of the bank financial situation made impossible the attraction of private funds which were necessary for covering losses.

According to Veneto Banca press release, in absence of official reaction to bank’s March 17 statement about interest in access to prudential recapitalization, the European Central Bank decided that Veneto Banca is prone to unstable risks. In its turn, the ECB Single Resolution Board stated that the mandatory procedure of liquidation will ensure proper protection to depositors, investors and bank clients.

“The crisis resolution is now in hands of Italian authorities. Proposals, which arrived recently from them, will allow all clients of bank and group’s companies to continue working without interruption, protecting both depositors and holders of bonds with prior claim, and everyone who took credits from the ban and the group”, the press release says.

According to the procedure, the bank Board of Directors will remain accessible for formal activity in accordance with conditions, provided by the law and, consequently, any managerial decision, adopted for the bank’s future will contribute to preserving of the heritage and human capital of the group.

On Monday, the Bank of Italy announced the agencies, which will be engaged in liquidation. Thus, shareholders’ rights and subordinated liabilities will remain in their responsibility.

Bank clients will not suffer consequences as a result of this transmission: offices and bank subdivision will be open and capable of working. All bank transactions will be conducted without changes, but under the responsibility of the bank Intesa Sanpaolo, who has bought healthy assets of Veneto Banca.

Infotag’s dossier: Intesa Sanpaolo Bank Board of Directors approved the purchasing of two problematic banks in Italy – Banca Popolare di Vicenza and Veneto Banca. The Intesa Sanpaolo is buying only good assets of these banks at a symbolic price of 1 euro except the irreparable and risky credits, non-priority bonds and other assets, which may worsen the banks’ capital adequacy rates or influence its dividend policy.

Intesa Sanpaolo is an Italian bank group, one of Eurozone’s largest banking groups, headquartered in Torino. It was founded on January 1, 2007 as a result of merger of two Italy’s leading banks – Banca Intesa and Sanpaolo IMI.

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