BRUSSELS, Nov 4 (Reuters) - Italy could follow the example set by Belgium and the Netherlands to help its banks, but any help would be done with the aim of financing business, Italian government and treasury officials said on Tuesday. "If we approve another measure it will be for business financing," Economy Minister Giulio Tremonti told a news conference. "(The measure) will pass through banks because governments do not finance business directly."
Italy passed a decree on rescuing banks on Oct. 9 but the government has yet to disclose how it plans to implement it.
Unlike other European countries, Italy has not poured any cash into its banks and has not created a special fund to help them. But it has offered to inject capital or underwrite debt if any bank requests it.
At the news conference, Treasury Director-General Vittorio Grilli said the country was reviewing the technical details of helping banks and could use those adopted by Belgium and the Netherlands as models.
Belgium has pledged to back interbank or institutional financing for all its banks. It has offered Dexia state guarantees. It has also carved up Fortis with Luxembourg and the Netherlands.
Last week, Tremonti said any state intervention in banks should only be temporary and the government taking a direct stake could be harmful for politics.
Tremonti told the news conference the rising demand for government debt had kept in check the cost of issuing new debt even if spreads had widened.
Tremonti and Grilli were in Brussels for a meeting of European Union finance ministers.

(Reporting by Valentina Za; writing by Danilo Masoni and Gilles Castonguay; Editing by David Cowell) Keywords: ITALY/POLICY (danilo.masoni@thomsonreuters.com; +39 02 6612 9507; Reuters Messaging: danilo.masoni.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.