MILAN, Sept 10 (Reuters) - Italy’s Unicredit expects a project on restructured loans involving domestic rival Intesa Sanpaolo and U.S. private equity firm KKR to be completed by the end of this year, its chief executive said on Wednesday.
The CEO of Intesa Sanpaolo CEO had said in July the project could be wrapped up in the autumn.
Italy’s top two banks signed in April a deal with KKR to pool some of their problematic loans.
The project “goes on and will be completed by the end of the year,” UniCredit CEO Federico Ghizzoni told reporters on the sideline of an event.
The two banks are setting up a special vehicle to manage some restructured loans they are both owed by the same struggling businesses, hoping that combining the troubled debts along with outside expertise and capital could either make those debts more recoverable or easier to sell to third parties. (Reporting by Gianluca Semeraro, writing by Francesca Landini, editing by Valentina Za)