Information concerning the financial institution was incomplete, the dangers better than anticipated and, so, Italy’s largest lenders are attempting to evaluate a 750 million euro plan to save lots of Banca Progetto, after warning that new developments in a prison investigation have elevated the authorized dangers. Intesa Sanpaolo SpA, UniCredit SpA and three different Italian lenders despatched a letter earlier this month to the commissioners of Banca Progetto, appointed by Bankitalia to supervise the Oaktree Capital Management outfit, warning that the rescue deal agreed earlier this yr was primarily based on incomplete info. The group of credit score establishments, which additionally contains Banco Bpm, Mps and Bper, as reported by Bloomberg, is now searching for additional ensures and a revision of the unique phrases agreed with the Interbank Deposit Protection Fund.
The historical past of the collapse
In 2025, Italian authorities positioned the lender beneath receivership after it emerged that some state-backed loans had been made to firms not directly managed by people allegedly linked to the ‘Ndrangheta.
The switch failed
The allegations scuttled the challenger financial institution’s deliberate sale to Centerbridge Partners. The Bank of Italy launched its personal investigation and positioned Banca Progetto beneath extraordinary administration in March 2025.
After months of negotiations, the commissioners reached an settlement on January 28 for a capital injection of 750 million euros. The settlement supplied that every financial institution would personal an 18% stake in Banca Progetto and that the FITD would personal the remaining 10%. The banks additionally dedicated to a broader threat discount of Banca Progetto, which would come with the sale of a big portfolio of non-performing loans and the securitization of performing money owed backed by an FITD assure.
However, the group of rescuers now claims that statements made final month by a Milan prosecutor throughout a parliamentary listening to have considerably modified the chance profile of the operation, the sources stated. The prosecutor warned that the plan is not going to defend Banca Progetto from additional authorized motion, because the prison investigation probes anti-money laundering procedures and loans to firms linked to organized crime.
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