Italy has asked EU to extend GACS guarantee scheme for bad loans

04 Jul, 2018

The so-called GACS scheme, introduced at the beginning of 2016, was conceived to help the country's banks offload their bad loans and had already been extended.

At the heart of the GACS programme is a state guarantee that protects buyers of the safest - or most senior - tranche in the securitisation. That lowers its risk to that of a government bond, cutting the securitisation vehicle's financing costs.

Copyright Reuters, 2018

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