MILAN, Reuters to UniCredit.
“AMCO has finalized the set-up of the organization to perform synthetic securitization transactions on sound loans qualified as ‘Stage 2’ (sub-investment grade), thus opening up new business perspectives,” said the company at the announcement of its first half results. .
Last week, AMCO gained access to data on problematic loans from Monte dei Paschi (MPS) as the process of selling the bank to bigger rival UniCredit moved forward.
UniCredit has previously said it will not accept any questionable loans from its rival.
Sources have said that AMCO could take over MPS’s € 4.2 billion ($ 4.96 billion) bad debts and part of its € 15 billion phase 2 loans, adding that synthetic securitization could be a way to manage these.
AMCO said on Friday that first-half net profit jumped to 36.5 million euros, from 7 million euros in the same period last year, due to increased revenues and recoveries.
($ 1 = 0.8462 euros)
(Reporting by Francesca Landini; Editing by Susan Fenton)