MILAN (Reuters) - There is no risk that European authorities will block a bank fund set up by Italian financial institutions to shore up weaker lenders, Italy's Economy Minister Pier Carlo Padoan told financial newspaper Il Sole 24 Ore on Wednesday.
In a separate interview, Bank of Italy Director General Salvatore Rossi said the vehicle did not increase systemic risk for Italian banks.
On Monday, Italy's UniCredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP), state lender CDP and others agreed to create a fund with a war chest of up to 6 billion euros (4.78 billion pounds) that would help buy shares in upcoming stock issues at distressed lenders and purchase non-performing loans.
Shares in Italian banks closed in negative territory on Tuesday, weighed down by doubts over how the fund will function.
"The state plays no role in the initiative ... so I do not see any risk," Padoan said about the possibility the fund could violate European state aid rules.
The minister also said the government would next week approve new measures to speed up bankruptcy procedures to help banks shed some of the 360 billion euros in soured loans weighing on their balance sheets.
The Treasury was weighing the possibility of further cutting its stake of 65 percent in the national post office Poste Italiane (MI:PST), Padoan added.
