Print Edition - 2016-12-29  |  Money Digest

ECB for ‘$9.2b’ BMPS bailout


Dec 29, 2016-

Italy’s troubled third-largest bank, Monte dei Paschi di Siena (BMPS), said Tuesday that the European Central Bank has called for it to receive a bailout of 8.8 billion euros ($9.2 billion). The ECB’s reported need for recapitalisation at BMPS, the world’s oldest bank, is over three billion euros more than judged necessary just one month ago. BMPS cited letters from the ECB to the Italian ministry of finance and economy indicating that the results of 2016 stress tests showed the capital needs of BMPS at 8.8 billion euros. The eurozone central bank also noted that the bank’s liquidity had deteriorated between November 30 and December 21. Ignazio Angeloni, an Italian national on the ECB’s Supervisory Board, told the La Stampa daily that “a public intervention into a bank is always the last option, subject to very strict rules.” (AFP)

Published: 29-12-2016 09:17

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