The European Parliament finally set new awaited rules for distressed credits (see here a previous post by BeBeez). Such framework aims to strengthen the European Banking Union. The Parlament said in a statement that the NPL category will include all those loans still unpaid 90 days after their deadlines and for which it would be difficult to get the full reimbursement. Furthermore, these new rules say that banks have to set aside resources to cover those eventual losses due to those credits that could go in distress. The European Parliament also appointed José Manuel Campa from Spain as chairman of the European Banking Authority, Philip Lane, from Ireland, as chief economist at the European Central Bank, and Sebastiano Laviola, from Italy, as a member of the Single Resolution Board (SRB).
The Italian Government, instead, will renew the GACS, the warranty for senior tranches of distressed credits (see here a previous post by BeBeez). According to BeBeez NPL and Distressed Credit Report for 2018, there were 14 securitisations worth in the region of 51 billion of euros that applied for GACS in 2018. The Italian Government will issue as part of the laws for supporting the stability of the financial services sector in the case of hard Brexit. A draft text is now circulating in Italy (see here a previous post by BeBeez).
Furthermore, the Italian Government is working on new fiscal incentives for private investments (see here a previous post by BeBeez). The following options among others are under discussion: the creation of a fund for insuring the losses on loans worth up to 5 million and with an over ten years tenure that banks issued to SMEs; further resources for the warranty fund for corporate minibonds; a less rigid regulation and tax incentives for creating SPVs for UTPs.
Illimity, the listed Italian challenging bank, acquired Npl portfolios with a face value of 95 million euros (see here a previous post by BeBeez). Andrea Clamer is the head of NPL Investment & Servicing at Illimity, while Corrado Passera is the company’s ceo.
Banca Mediocredito FVG ( part of Gruppo Bancario Cooperativo Iccrea) sold a portfolio of NPLs worth 40 million of euros to an undisclosed Italian financial investor (see here a previous post by BeBeez). Enrico Duranti, ceo of Banca Mediocredito FVG and coo of Iccrea BancaImpresa, said that such a transaction will allow the bank to support the SMEs of the Friuli region. Finint Securitization Group acted as arranger, while RCC provided legal assistance
According to the Supply Chain Observatory of the School of Management of Milan Polytechnic the commercial credits of Italian companies that received financing last year are worth 530 billion of euros (see here a previous post by BeBeez). Even though Italy is the second European market for the Supply Chain after France (662 billion), it has a size that is potentially bigger than Germany (503 billion). Fintech can grow in this field, said Federico Caniato, the head of the Observatory. However, also innovative technologies such as blockchain, Internet of Things, Artificial Intelligence, and Big Data Analytics, may give a relevant contribution to the growth of the Italian market of supply chain finance.
In February 2019, October, the P2P lending platform for financing SMEs, reimbursed to the lenders more than 100 million euros out of a total amount of investment worth 264 million carried out since the company’s foundation in France in 2015 (see here a previous post by BeBeez). The median financing ticket is of 460k euros (find out here how to subscribe to BeBeez News Premium for just 20 euros per month and read the BeBeez Report about Private Debt and Direct Lending 2018). Sergio Zocchi is October’s Country Manager for Italy.
Alternative Capital Partners (ACP), a manager of illiquid asset according to the guidelines of ESG (environmental, social and governance), is starting its activity (See here a previous post by BeBeez). ACP will invest in the fields of energy, infrastructure, and social real estate funds (such as co-working, co-living, student housing). ACP fundraising target of 500 million euros in three years. Emanuele Ottina and Evarist Granata founded ACP. Brioschi Sviluppo Immobiliare,Salvatore and James Ferragamo, Panda, Alessandro Ielo, Leta, Energy Capital have 22.4% of ACP. Paolo Toriello is ACP’s Energy Infrastructure Fund Manager & Partner.