The capital increase of Mps “must be completed by 2022” and only after this operation will the Ministry of Economy evaluate the bank’s exit from capital. This was said by the Minister of Economy Daniele Franco during a hearing by the Parliamentary Commission of Inquiry into the banking system. Franco explained that only after this transaction – which will be taken into account in terms of value in the sale of the bank – “most likely” will the Mef evaluate the sale of its stake in Mps.
Franco also recalled that the negotiation that the Mef is having with the European Commission on the extension of the terms for the sale of Mps also aims to ensure that the compensatory measures requested by Brussels for the failure to achieve the objectives “are realistic and not realistic. to compromise the bank’s business plan “. The plan approved by the board includes an increase of 2.5 billion euros.
The exit from Mps and Popolare Bari with sustainable times
“The Mef, as a patient investor, – said Franco again – must pay the utmost attention so that the plans and strategies and eventually the exit of the state take place in a sustainable way for companies and for the economic system”. Thus Franco on the timing of the divestment of public shareholdings in Mps and Popolare di Bari. The minister explained that the Mef is negotiating a “reasonable extension” with the European Commission on the timing of the disposal of the shares with respect to the deadline of the end of 2021, and that for Mps this will happen “only after the completion of the capital increase and after the start of the cost containment and efficiency improvement initiatives defined in the industrial plan”. The timing of decommissioning “will depend on progress on these two profiles”.
Popular Bari, possible sale after the reorganization
As for the Banca Popolare di Bari, now owned by Mcc, it is “absolutely important” underlined Franco, that “it continues its action to contain costs and recover the ability to make investments on a larger scale. Once this phase has been overcome, it will be possible to consider the return to the sale of the state shareholding which, however, presupposes the overcoming of the current difficulties ». Franco reiterated that the aggregation of the cooperative with Mcc “can provide an important contribution to the development of the southern regions, where there is a shortage of relevant banks and sometimes difficulties” with an entrepreneurial fabric mainly made up of SMEs and where “the quality of credit it tends to be less good than in the rest of the country “.
Satisfactory solvency and profitability of the sector
Over the last year, Italian banks have shown “satisfactory solvency and profitability,” said the Minister of the Economy. Adding that “credit quality is stable, the incidence of impaired loans has decreased and last year profitability has improved”. In the hearing Franco recalled that the direct exposure of Italian banks to Russia is 29 billion equal to 0.7% of financial assets ». The minister adds that the new Italian public support measures, authorized by the new Temporary Framework of the EU, will be included in the Italian legislation by an upcoming decree which will have a horizon until next December 31st.