Pier Carlo Padoan: Italy has 'no banking problem'

Italy does not have a problem with its banks, finance minister Pier Carlo Padoan said Sunday, despite investors fretting about nearly $400 billion of bad debts weighing down the sector, reported AFP.

Fears of a renewed eurozone debt crisis are rife on the financial markets if Italy does not address the 360 billion euros ($398 billion) in bad debt sitting in its banks.

Markets have turned sour on several Italian banks, most notably Italy's number-three lender and the world's oldest bank, Banca Monte Paschi.

But Padoan sought to calm nerves on the sidelines of a G20 finance chiefs meeting in the Chinese city of Chengdu.
"All the countries should relax: there is no Italian banking problem," he told AFP.
"There is an economy which has been in recession for three years, there is accumulated non-performing loans, which have been dealt with," he said.