Bank must resume extending credit to small businesses: Italian PM

| Wednesday, July 13, 2016 - 09:07
First Published |
Italy, matteo renzi, brexit, bank, eu, economy, finance, rome, banking, business,

Renzi said that account holders at the bank of Monte dei Paschi di Siena can rest easy | Photo: IANS

Rome: Italian Prime Minister Matteo Renzi said on Tuesday that banks of Italy must resume extending credit to small businesses in the wake of the Brexit, playing down media reports regarding problems in Italy's banking sector, according to ANSA news agency.

"A return to common sense in the EU is key," he told RTL private radio, Xinhua reported.

"Banks must resume making loans to artisans and small and medium businesses. We need more humane rules for people after recent years in which they appeared to only benefit credit institutions and the finance world. I think everything can be resolved with common sense and by applying current rules," Renzi said.

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According to the ANSA report, the premier also mentioned the oldest Italian bank which has been revealed large amount of bad loans recently.

Renzi said that account holders at the bank of Monte dei Paschi di Siena (MPS) can rest easy.

"The issue is a throwback to highly questionable management in the past but now account holders can sleep well at night -- some bankers may not be so lucky," he said.

Renzi on Monday also specified the referendum on Italian constitutional reform law taking place in October is not comparable to the Brexit referendum.

"I don't believe it will be the same thing," he said in an interview with local daily Corriere della Sera. "We've been saying for 30 years constitutional reforms are needed because we have the largest and costliest parliament in the world. I will do everything in my power to make sure (the constitutional reform law) is voted on its merits," he said.

According to Italy's constitution, any laws amending the charter must be approved by popular referendum if passed with less than a two-thirds majority in each house of parliament.

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