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EU to approve Italy state aid for Monte dei Paschi in coming weeks: official
May 16, 2017 / 10:49 AM / 4 months ago

EU to approve Italy state aid for Monte dei Paschi in coming weeks: official

A man walks on a logo of the Monte Dei Paschi Di Siena bank in Rome, Italy September 24, 2013. REUTERS/Alessandro Bianchi/Files

MILAN (Reuters) - The European Commission is expected to give its green light for Italian state aid to troubled lender Monte dei Paschi di Siena (BMPS.MI) in coming weeks, an official of Italy’s Economic Ministry said on Tuesday.

The Rome government is set to take a majority stake in the Tuscan bank, injecting money to take the lion’s share of an 8.8 billion euros capital deficit, after the lender failed to raise funds on the market last year.

But the state aid scheme still needs to be approved by the European Commission, which must also give its green-light to the bank’s restructuring plan.

“In the next few weeks the Commission is expected to take a decision on state aid and then the Treasure will proceed to recapitalise the bank,” top Treasury official Fabrizio Pagani told reporters.

Pagani added it seemed to him the bank had already been made safe as of several months.

The lender is also in talks with banking rescue fund Atlante over the disposal of its bad loan portfolio, Pagani said.

Reporting by Andrea Mandala

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