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No need to drag out decision on Monte dei Paschi, ECB's Nowotny says
December 12, 2016 / 10:23 AM / 9 months ago

No need to drag out decision on Monte dei Paschi, ECB's Nowotny says

VIENNA, Dec 12 (Reuters) - 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 conference.

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 Monday. (Reporting by Francois Murphy; editing by John Stonestreet)

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