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

Pistachios and other Nuts can Help Prevent Diabetes: Study

Spanish scientists from the University of Rovira and Virchow in a latest study revealed that eating pistachios can help prevent diabetes. They said that pistachios are a rich source of unsaturated fats and can be very helpful to those who are at high risk of type-2 diabetes.

During the study, the researchers examined 54 people who were...

Most Popular

Compared to Whites, American-African Women Get Less Breastfeeding Support

In comparison to white women, African-American women...

English Couple Arrested for Taking their Son from hospital without Doctors’ Perm

Police have arrested a couple after they took their son...

Novartis’ New Drug Effective in Treating Heart Ailments

A new heart drug by Swiss company Novartis has shown...

Two Mite Species Crawl on Our Face

A novel research has come up with an interesting finding...

Poll

Can Greece Come out of Economic Problems: