Sanpaolo CEO says Fiat shake-up won't change loan


ROME, May 31 (Reuters) - A shock management shake-up at Fiat will not change the way bankers view a key loan the struggling Italian industrial group must pay back next year, the head of Sanpaolo IMI bank said on Monday.

Ferrari Chief Luca di Montezemolo was named Fiat's new chairman on Sunday to take over from Umberto Agnelli who died last week. In protest, respected Chief Executive Giuseppe Morchio, the banks' point man on the loan deal, resigned.

Eight banks gave Fiat a three billion euro loan in 2002 to help Italy's biggest industrial group throught its worst crisis and are in discussions with Fiat about its repayment.

If Fiat cannot pay back the money next year or misses debt targets, the banks will be able to convert the loan into equity worth about 25 percent of Fiat's stock.



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