Italy's premier says holders of accounts in two troubled Italian banks will have their savings guaranteed despite insolvency proceedings.
Premier Paolo Gentiloni was referring to Veneto Banca and Banca Popolare di Vicenza, which have struggled with unpaid loans. The European Central Bank Friday night ruled those banks were "failing or about to fail."
In comments on Italian state radio Saturday, Gentiloni said after meeting with his economy minister "the guarantee regarding savers, account-holders, is a guarantee that I feel I can totally confirm."
The government was expected to quickly hold a Cabinet meeting to decide about taking on the banks' deteriorated assets, a cost estimated at some 8 million-10 million euros (nearly USD 9 million-USD 11 million). Italian bank Intesa Sanpaolo has said it would be willing to acquire the good assets.
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