Monte dei Paschi's rescue deal has been finalised: Bank of Italy
Reuters
Published Jun 26, 2017 07:25AM ET
Monte dei Paschi's rescue deal has been finalised: Bank of Italy
ROME (Reuters) - A rescue deal that will allow Italy to inject up to 6.6 billion euros ($7.4 billion) into the country's fourth largest bank Monte dei Paschi di Siena (MI:BMPS) has received all necessary approvals by EU authorities, a top central bank official said.
The Bank of Italy's Deputy Governor Fabio Panetta told a press briefing on Monday that Monte dei Paschi's bailout was a "a done deal."
At the same briefing, Chief Supervisor Carmelo Barbagallo said the EU Commission had only to formalize its approval but there were no doubts that, unlike regional rival Popolare di Vicenza and Veneto Banca, Monte dei Paschi would be able to tap state aid to remain in business.
Barbagallo said Monte dei Paschi would close a bad loan sale, a key plank of its rescue plan, thanks to the fact that banking industry bailout fund Atlante could now divert cash previously earmarked for the Veneto banks' soured debts to buy Monte dei Paschi's bad loans.
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Written By: Reuters
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