The European Commission has approved the third prolongation of the Italian guarantee scheme to facilitate the securitisation of non-performing loans (Fondo di Garanzia sulla Cartolarizzazione delle Sofferenze – GACS).
Under the scheme, which was initially approved in February 2016 and last prolonged in August 2018, Italian banks meeting certain conditions will still be able to request a State guarantee on the lower-risk senior notes issued by private securitisation vehicles that help them to finance the sale of their non-performing loan portfolios.