MILAN (Reuters) - Banca Monte dei Paschi di Siena (BMPS.MI) unveiled on Monday a tough turnaround plan aimed at regaining profitability and winning investors’ favor to fend off nationalization.
In a statement, the bank said it aimed to fully repay state loans taken to plug a capital hole by 2017 and make by then a net profit of 900 million euros ($1.22 billion).
The European Commission had asked Monte Paschi’s top management to draft a new restructuring plan as a condition to grant its green light to a multi-billion euro state bailout. The Commission has also requested that Monte dei Paschi carries out a 2.5 billion euro capital hike, which the bank says it will execute in 2014.
Reporting By Lisa Jucca, Editing by Stephen Jewkes