Frankfurt, 11 – The board of Italian bank Monte dei Paschi di Siena is this Sunday to try to find a way to repair the hole of 5 billion euros in its finances.Should the MPS not be able to raise additional capital from private investors in the next few days, it may need a bailout funded by the government in Rome.
The problems of the institution, are one of the first that the new prime minister of Italy, Paolo Gentiloni, will have to solve. He assumed the office this Sunday, after the resignation of Matteo Renzi.
A bailout funded by the State can be politically explosive, since the rules of the European Union can ask that the shareholders of the institution to incur losses in return for the entry of taxpayer money. Many are investors of small size which were not completely aware of the risks. The government can look for a way to compensate them to do the project floor. Source: Dow Jones Newswires.
No comments:
Post a Comment