ITALIAN IMPLEMENTATION OF ASSET FREEZE ON BANK

S E C R E T ROME 000971 SIPDIS SIPDIS STATE FOR ISN/CPI, JENNIFER CHALMERS AND NEA/IR, SEAN MISKO TREASURY FOR TFFC, RACHEL LOEFFLER E.O. 12958: DECL: 05/09/2017 TAGS: EFIN KNNP PARM PREL UNAUS IR IT SUBJECT: ITALIAN IMPLEMENTATION OF ASSET FREEZE ON BANK SEPAH ROME REF: A. STATE 60238 ¶B. ROME 628 Classified By: Economic Minister Counselor Tom Delare for reasons 1.4 (b) and (d). ¶1. (S) The Bank of Italy (BOI) March 26 sent two "provisional administrators" to manage Bank Sepah Rome's affairs for sixty days, effectively placing the branch under BOI control (Ref B). BOI reported March 27 that Bank Sepah Rome is now "an empty box" -- i.e., the branch allegedly has no remaining liquid assets, cannot pay its employees, and conducts no banking activity. ¶2. (S) A high-level BOI official reported to EcMin April 20 that the BOI will likely recommend that the Ministry of Finance (MOF) appoint a "special administrator" after the sixty day period to manage the branch and potentially liquidate the branch's assets to pay its outstanding bills. Any such action would take place in late May. A BOI regulatory official supervising BOI's oversight of Bank Sepah Rome confirmed this May 8 and reported no new developments. Spogli