Banca Progetto, big banks demand bailout guarantees
The information on the bank was incomplete, the risks greater than expected and, thus, the major Italian banks are trying to revise a 750 million plan
Information about the bank was incomplete, the risks greater than expected, and so Italy's largest banks are seeking to revise a EUR 750 million plan to rescue Banca Progetto, after warning that new developments in a criminal investigation have increased legal risks. Intesa Sanpaolo SpA, UniCredit SpA and three other Italian lenders sent a letter earlier this month to Banca Progetto's commissioners, appointed by Bankitalia to oversee the Oaktree Capital Management-owned institution, warning that the rescue deal agreed earlier this year was based on incomplete information. The group of banks, which also includes Banco Bpm, Mps and Bper, is now seeking additional guarantees and a review of the original terms agreed with the Interbank Deposit Protection Fund, according to Bloomberg.
The history of disruption
In 2025, the Italian authorities placed the bank under receivership after it emerged that some state-guaranteed loans had been disbursed to companies indirectly managed by persons allegedly linked to the 'ndrangheta.
The missed transfer
The allegations caused the planned sale of the challenger bank to Centerbridge Partners to fail. The Bank of Italia launched its own investigation and placed Banca Progetto under extraordinary administration in March 2025.
After months of negotiations, the commissioners reached an agreement on 28 January for a capital injection of EUR 750 million. Under the agreement, each bank would own an 18% stake in Banca Progetto and the FITD would own the remaining 10%. The banks also committed to a broader reduction of Banca Progetto's risk, which would include the sale of a large portfolio of non-performing loans and the securitisation of performing debt backed by a FITD guarantee.
However, the rescue group now claims that statements made last month by a Milan prosecutor during a parliamentary hearing significantly changed the risk profile of the operation, sources said. The prosecutor warned that the plan would not protect Banca Progetto from further legal action as the criminal investigation investigates anti-money laundering procedures and loans to companies linked to organised crime.
