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Italy treasury set to take stake in Monte dei Paschi-treasury source
February 12, 2015 / 1:02 PM / 3 years ago

Italy treasury set to take stake in Monte dei Paschi-treasury source

ROME, Feb 12 (Reuters) - The Italian treasury will take a stake in the country’s troubled lender, Monte dei Paschi di Siena, as the bank will pay a coupon on state loans in shares because it ended the year with a loss, a treasury source told Reuters.

Monte dei Paschi on Wednesday reported a loss of 5.34 billion euros for 2014. Under the terms of the loans it received under a state aid scheme, if the bank does not report a profit, it has to pay the annual coupon on the loans with new shares.

According to an initial broker estimate, at current market prices the treasury would end up with a stake of around 10 percent in the lender after the payment of the 2014 coupon of 243 million euros.

The treasury stake would be around 5 percent after the bank completes a planned 3 billion euro capital increase. (Reporting by Stefano Bernabei, writing by Silvia Aloisi)

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