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State rescue for Monte dei Paschi to be completed in 2-3 months - Il Sole 24 Ore
December 22, 2016 / 7:59 AM / a year ago

State rescue for Monte dei Paschi to be completed in 2-3 months - Il Sole 24 Ore

MILAN, Dec 22 (Reuters) - The expected state rescue of Italy’s Monte dei Paschi di Siena will be carried out in different steps and will require two or three months to be completed, Italian daily Il Sole 24 Ore reported on Thursday citing sources.

A government-led bailout for the ailing bank is now looking inevitable as Monte dei Paschi failed to pull off a last-ditch rescue plan and to secure an anchor investor for its offer of new shares.

Although details are still to be defined, the capital hike envisaged for Monte dei Paschi under the state is unvaried at 5 billion euros, added Il Sole 24 ore.

The Italian government, due to step in as early as Thursday, is expected to first allow Monte dei Paschi to tap state guarantees in order to raise fresh funds in case it runs out of liquidity.

A second step will see the government setting up a 20-billion euro fund aimed at recapitalising the country’s weakest banks, including the Tuscan lender, which would be required to present a new industrial plan.

Reporting by Francesca Landini and Giulia Segreti

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