Italy's top two banks, Intesa Sanpaolo and UniCredit, are in preliminary talks with U.S. investor KKR about setting up a fund to hold some of their bad debts, Reuters reports.
Potentially, this would make it possible for KKR to benefit from the recovery of Italy's economy.
According to some other sources, this initiative is focused on so-called restructured loans that were already discussed before. In late September, before the write-off, such loans at UniCredit Banca and Intesa Sanpaolo amounted to EUR 8.1 billion and EUR 2.5 billion, respectively.
The banks declined to comment, while KKR was unavailable.