Monday, December 12, 2016

Monte dei Paschi is moving forward with recapitalization private – Jornal de Negócios – Portugal

The board of directors of the Monte dei Paschi decided to meet after it has been reported that the president of the Republic, Sergio Mattarella, has invited Paolo Gentiloni, minister of Foreign Affairs of the Executive of Matteo Renzi to form a government.

The third largest bank of Italy believes that the fact that the Gentiloni has agreed to form a government will be able to renew the confidence of investors. And it is this perspective that led the board of directors to proceed with the recapitalisation plan.

After these developments, the Monte dei Paschi decided to proceed with a recapitalisation through private funds, according to Reuters that cites a source close to the process. According to the same source, the plan includes the reopening of the debt exchange offer for shares for investors of retail and the placement of shares in the market.

Reuters reported this Sunday that the sovereign wealth fund of Qatar may be interested in entering the capital of the bank. The sovereign wealth fund of Qatar may inject about one billion euros. At the same time, a consortium of banks will be trying to sell shares in the market.

On Friday, it was reported that the European Central Bank (ECB) had rejected the extension of the term for which the Monte dei Paschi carried out the recapitalisation of five thousand million euros. Which means that the financial institution – the only one that chumbou in the stress tests – will carry out this recapitalization by the end of the year. Which means that the bank will have approximately 15 days to be able to recapitalise themselves.

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