VIENNA Dec 12 There is no need to drag out a
decision on how to rescue Italian bank Monte dei Paschi di Siena
, European Central Bank policymaker Ewald Nowotny said
on Monday, confirming that the ECB refused to give the bank more
time to recapitalise.
"There is a certain general feeling that it would not be
good to delay things for too long," Nowotny told a news
If the bank failed to arrange a capital increase in time,
one would have to look at the legal options and proceed with
caution because of Monte dei Paschi's size, he added.
Italy prefers a market solution to save the bank, but should
it fail a state rescue would require a forced conversion of the
bank's bonds into shares, Treasury sources in Rome said on
(Reporting by Francois Murphy; editing by John Stonestreet)