Italy backs 8 percent minimum bail-in for ailing banks

Tue Dec 10, 2013 8:31am EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

BRUSSELS (Reuters) - Italy's Economy Minister Fabrizio Saccomanni said on Tuesday that public intervention on troubled banks should come after inflicting losses on bondholders through a minimum bail-in of 8 percent of total bank liabilities.

Yet, Saccomanni the introduction of bail-in clauses may spread risks across the euro zone banking sector.

"In case of a systemic crisis, public intervention would be preferable to the risk of contagion generated by an extended use of bail-in (clauses)," Saccomanni said speaking at a meeting of European Union finance ministers in Brussels.

(Reporting by Francesco Guarascio, writing by Francesca Landini; editing by Lisa Jucca)

The Italian Economy Minister, Fabrizio Saccomanni, arrives at the G7 Finance Ministers meeting in Aylesbury, southern England May 10, 2013. REUTERS/Alastair Grant/Pool