June 13, 2017 / 10:20 AM / a month ago

EU seeks solution on Italy's Veneto banks that spares senior bondholders

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BRUSSELS, June 13 (Reuters) - The European Commission is seeking a solution for two ailing banks from Italy's Veneto region that would avoid losses for senior bondholders, a spokesman said on Tuesday, stressing that in any case depositors would not be hit.

Banca Popolare di Vicenza and Veneto Banca are seeking public and private support to avoid a possible liquidation by the end of the month.

"Constructive contacts are ongoing in order to reach a solution for the two banks in line with EU rules, without the bail-in of senior bondholders. Depositors will in any case be fully protected," a Commission spokesman for competition said on Tuesday. Margrethe Vestager is the commissioner in charge of competition.

Earlier on Tuesday Italy's finance minister Pier Carlo Padoan said a solution on the two banks was close. (Reporting by Francesco Guarascio @fraguarascio; editing by Philip Blenkinsop)

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