ROME (Reuters) - Italian Prime Minister Giorgia Meloni's party has filed a new proposal to protect borrowers if they fall behind in repaying their bank debt, another move that investors said stoked risks for the country's 307 billion euro ($328 billion) bad loan market.
Italian lawmakers upset bad loan investors last month by proposing to give borrowers the right to repay their original loan at the discounted price at which the creditor bank sold it on, plus a 20% premium. To dispel concerns, Meloni said on Sept. 7 that there were no measures "on the launch pad" for non-performing loans.
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