Belfast Telegraph

PM 'confirms guarantee' for savers as troubled Italian banks face insolvency

People with accounts in two troubled Italian banks will have their savings guaranteed despite insolvency proceedings, the prime minister has said.

Paolo Gentiloni was referring to Veneto Banca and Banca Popolare di Vicenza, each struggling with unpaid loans.

The European Central Bank ruled on Friday night that those banks were "failing or about to fail".

Speaking on Italian state radio, Mr Gentiloni said "the guarantee regarding savers, account-holders, is a guarantee that I feel I can totally confirm".

The government was expected to quickly meet to decide about taking on the deteriorated assets, costing public coffers an estimated eight billion to 10 billion euro (£7 billion to £8.8 billion).

Italian bank Intesa Sanpaolo has said it would be willing to acquire the good assets.