Italy says in technical talks with Brussels over bad bank plan

Reuters
Updated
Italian Finance Minister Pier Carlo Padoan (L) talks with his French counterpart Michel Sapin and Spanish Economy Minister Luis de Guindos (R) at a euro zone Finance Ministers meeting (Eurogroup) in Brussels March 9, 2015. REUTERS/Yves Herman

BRUSSELS (Reuters) - Italy is in technical discussions with the European Commission over its plans to form a vehicle, known as a "bad bank," to help its banks offload soured loans, Economy Minister Pier Carlo Padoan said on Monday.

"We are in very detailed technical discussions with the European Commission," Padoan told reporters in Brussels when asked about Rome's plans for a bad bank. "The government is committed to dealing with this situation as quickly as possible."

According to official data Italian lenders had bad debts worth around 330 billion euros (236.88 billion pounds) at the end of June last year, and they have been struggling to offload these loans.

(Reporting by Francesco Guarascio, writing by Gavin Jones)

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