Italy to renew GACS for two years without UTP clause

The Italian government is to implement a two-year programme which will replace the Garanzia sulla Cartolarizzazione delle Sofferenze (GACS) scheme in order to help the banks shift their €200bn stock of non-performing loans (NPLs) off balance sheet. In a surprise, however, the new version of the scheme will not include language to incorporate unlikely-to-pay (UTP) loans.