Thursday, February 11, 2016

Banks, arriving tax rebates on real estate slip refunds – The Messenger

ROME – Reform of Credit Cooperative and public guarantee for the sale of the suffering, with the addition of a novelty: the suspension for 2016 registration tax (9%, amounting to a value of 200 million) liability for banks that take over the assets to secure the loans, provided they resell the goods within two years. These are the two substantial chapters finished in maxi-decree approved yesterday by the Council of Ministers in late evening, in time because Economy Minister Pier Carlo Padoan, can bring the dossier closed when today will discuss banks and banking union Eurogroup. is not entered, however, the package-decree chapter of compensation for savers hit by the collapse of the four banks, entrusted, as the Stability Law, an inter-ministerial decree and a Cabinet Decree, already ‘ready and will be presented in the coming days ” , said the Prime Minister Matteo Renzi at the end of the CDM.

as for amendments to the bankruptcy law intended to accelereare the debt recovery time, no one excerpt, remain assigned to the bill of reform of bankruptcy law approved yesterday by the CDM and today will present the ministers of Development, Federica Guidi and Justice Minister, Andrea Orlando. To sum up the philosophy of the maneuver on Banks was on the eve of the premier, speaking of “further measures to strengthen the system and encourage the transformation and fusion processes.” A concept also reiterated yesterday by the prime minister prepared to say that with the rules approved “the Italian system is more solid.” Of course, “no measure is decisive,” but “we further consolidation of mosaic tiles.” It is not over: “We will do all that is necessary to resolve the issue of non-performing loans.” Worried? “No, I’m much more concerned about banks in other countries also Italy’s most solid”, also because “a banking crisis, for example, Germany has some effect here too.”

MODEL FARMS FOR BCC

 As for the reform of the comprehensive cooperative credit the process started with the reorganization of the popular and foundations. It “paves the way to business combinations in the entire credit system” in the government’s expectations. The integration of the CBs system will change from a single banking group ‘reasonably’ to Renzi, although “then we’ll see what decideraano the Bcc”. The parent company will have a capital of one billion. The mechanism is such that those who want to exit the system can do so but “provided it has at least 200 million of reserves. Not only in this case will have to pay the Treasury a sum equal to 20% of these reserves, “he punutalizzato the same Renzi.

CUTTING OF LOANS

 And in fact, to strengthen the system, we will think, according to the government also double move on the sufferings that weigh on banks (201 billion). Thanks to the registration tax freeze that banks in executive procedures, and therefore also in the auctions, it aims to encourage banks to acquire and sell the goods at the sideline of sick loan. Which means tightening the credit collection times and increase the loan value, and possibly to be sold. To complete the interveno is the start of the public guarantee system for the sale of higher quality credit packages (senior), which grossed just yesterday the green light to the EU. But let’s see how the mechanism will work. Each bank may create a special purpose entity to which to transfer the bad loans that will be securitized, packaged and sold in the market through the issuance of several tranches of bonds (Abs Asset-backed securities Bonds) with increasing risk levels (senior, mezzanine or junior). Circumstances where the public guarantee? It can only take on senior tranches, as long as he writes Brussels on “quality” package is approved by “an independent rating agency approved by the ECB.” It must be said that the guarantee on the senior tranche, “explains the EU,” will become effective only after it has been sold on the market to private operators more than half of the junior tranche, which is not guaranteed and presents a higher risk. Of course the banks applying for the Treasury guarantee will pay a commission.
         

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