Reuters logo
Rescue plan to leave Italy's Monte Paschi 'hyper-capitalised' - economy minister to paper
December 29, 2016 / 7:38 AM / a year ago

Rescue plan to leave Italy's Monte Paschi 'hyper-capitalised' - economy minister to paper

MILAN (Reuters) - Italy’s Economy Minister said on Thursday that the ECB’s recent request to Monte dei Paschi (BMPS.MI) to plug a capital shortfall of 8.8 billion euros will lead the lender to be “hyper-capitalised” but not “over-capitalised”, in an interview with Italian daily Il Sole 24 Ore.

Italian Finance Minister Pier Carlo Padoan looks on before a confidence vote at the Senate in Rome, Italy December 14, 2016. REUTERS/Alessandro Bianchi

Pier Carlo Padoan said the government’s rescue of the country’s third biggest lender will set an example for future similar banking problems in the rest of Europe.

He added that the a delisting of the bank was not on the agenda and hoped that its shares - suspended from trade last week - would resume trading as soon as possible.

Padoan said that the ECB’s decision on Monday to raise the ailing bank’s capital shortfall to 8.8 billion euros ($9.2 billion), up from a previous 5 billion euro gap estimated by the bank, could not be contested.

But he added that it would have been “useful, if not kind” if the criteria used by the central bank to make the assessment had been explained in more detail.

Following the government-led recapitalisation - whose timing would be dictated by the lender’s industrial plan - Padoan said that Monte dei Paschi’s board would be reconsidered, but that no questions would be raised over the role of Chief Executive Marco Morelli. ($1 = 0.9561 euros)

Reporting by Giulia Segreti, editing by Isla Binnie

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below