Rome - Italy's government approved Monday a decree containing
measures to shield the country's banks, Economy Minister Giulio
Tremonti said, adding that the cost of the aid cannot be quantified at
this stage.
Tremonti said the country's central Bank of Italy would evaluate
struggling banks 'case-by-case' and then possibly recommend government
intervention, which in extreme situations could involve placing a bank
under state administration.
The state would also guarantee for a period of five years debts
incurred by Italian banks up until December 31 2009, Tremonti said.
These guarantees will reflect 'market conditions' and would be
applied using the same evaluation criteria when providing assistance
to banks that needed to recapitalize, he said.
The Economy Minister made the announcement at a news conference
following an extraordinary cabinet meeting in Rome scheduled in the
wake of Sunday's emergency meeting of eurozone leaders.
Pressed by reporters who cited other governments in Europe that
have provided an estimate of the amount of money needed to rescue
their countries' banks, Tremonti said Italy's government would make
the 'necessary' funds available and that these 'cannot be
predetermined.'
The measures where 'in line' with measures taken elsewhere in
Europe, Tremonti said.
Prime Minister Silvio Berlusconi, who is in Washington for an
official visit, and Tremonti have repeatedly described Italy's banking
sector as 'robust' compared to other European nations.
Monday's meeting served to approve a government decree proposed
last week which also re-affirmed the state's commitment to guarantee
bank deposits of up to 103,000 euros (138,000 dollars), Tremonti said.
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