Atlante

The Bank of Greece is working on a plan for the creation of a "bad bank" to which all nonperforming loans (NPLs) of banks will be transferred. The central bank intends to present the plan to the banks, the government and the European Central Bank's Single Supervisory Mechanism (SSM) by end-May.

Italy will pay up to 17 billion euros ($19 billion) to break up two insolvent Venetian banks, which have posed a threat to the country's banking system, the government announced on June 25.

Fitch Ratings said in a statement on Tuesday that the Greek government?s intention to create a ?bad bank? is a positive step toward achieving reform because it recognized that high volumes of nonperforming loans (NPLs) are impeding new lending.