Italy rules out state aid or nationalisation of Monte Paschi – minister

ezgif-com-resize-5ROME, Oct 12 (Reuters) – 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 Crispian Balmer)

Source: Business Insider

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