ROME Oct 12 Italian Economy Minister Pier Carlo
Padoan on Wednesday ruled out any state intervention or a
so-called "bail-in" to support the troubled lender Banca Monte
dei Paschi di Siena.
"No measures of public support or nationalisation are
foreseen (for Monte Paschi), and any talk about opening a
procedure for a bail-in is based on unfounded speculation,"
Padoan said during question time in parliament.
Monte dei Paschi has agreed to a new restructuring plan
based on a 5-billion-euro ($5.60 billion) capital boost and the
sale of 28 billion euros worth of bad loans, but there has been
speculation that the cash increase may fall short.
($1 = 0.8928 euros)
(Reporting by Steve Scherer and Giuseppe Fonte; Editing by