December 21, 2016 / 7:58 AM / a year ago

Monte dei Paschi says could run out of liquidity after 4 months

MILAN (Reuters) - Ailing Italian bank Monte dei Paschi di Siena expects to burn through around 11 billion euros ($11.5 billion) of liquidity more quickly than previously forecast, an updated document on the bank’s website showed on Wednesday.

A logo of Monte dei Paschi di Siena bank is seen on the ground in Siena, Italy, November 5, 2014. REUTERS/Giampiero Sposito/File Photo

Monte dei Paschi said it now expected its net liquidity position, currently standing at 10.6 billion euros, to turn negative after four months. On Sunday the bank had forecast that a current net liquidity position, which was of 11 billion euros, would turn negative after 11 months under a number of assumptions.

It said on Wednesday the position would be negative for 15 million euros on the 5th month and could worsen further to minus 740 million euros by the 12th month. This compares with the minus 100 million-euro level it forecast on Sunday for the 12th month.

($1 = 0.9606 euros)

Reporting by Valentina Za and Stefano Bernabei

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