Italian Bank Monte Paschi Wins Support from EU and Italy

Italian Bank Monte Paschi

European Union and Italy have agreed to provide help to ailing financial behemoth Banca Monte dei Paschi di Siena under tougher conditions. The conditions include more capital hike by the bank and stricter cost cutting. Italy’s third largest bank is suffering due to higher exposure to bond investment and derivatives scandal.

European Competition Commissioner Joaquin Almunia has stressed that the Italian bank will have to raise more capital. The bank was planning to raise Euro 1 billion, but the new conditions expect the bank to raise at least two billion Euro. Additionally, Monte Paschi will have to reduce the Italian bond holding. The bank holds government bonds worth 29 billion at interest rate of 9 percent.

Monte Paschi reported quarterly loss of 279 million euro during the second quarter. The bank has registered fall in net interest income. Monte Paschi has collective loss of 7.9 billion euro during the past two year period.

The European commission is investigating the role of bank in anti-competitive market practices. Italy has been reluctant to nationalise banks with weak financial condition. The bank will have to sell the government bonds. However, the period for the said sale has not been decided yet.


FrenchTribune Specials

Doctors do not tell Alzheimer’s Patients their Diagnosis

A report has showed that only 40% of people with Alzheimer's disease or their caregivers were told the diagnosis by their doctor. The new Alzheimer's Association 2015 Alzheimer's Disease Facts and Figures report was released today, revealing that Alzheimer's or their caregivers were confirmed about the diagnosis of the disease only after it had...

Most Popular

Allergy Season Seems to be Arriving Early This Year

Spring allergy season seems to have arrived early this...

Gecko cleanliness to be used in human technology

Technology experts have said that the properties of...

NSW, Western Australia to witness solar storm

Space enthusiasts and astrologists saw a stunning view...

Poll

Can Greece Come out of Economic Problems: