RSS   Newsletter   Contact   Advertise with us

Italy approves Banca Monte dei Paschi di Siena bailout

Staff Writer | December 23, 2016
Italy's cabinet has approved a bailout of Banca Monte dei Paschi di Siena after it failed to raise $5 billion from private investors.
Banca Monte dei Paschi
Banking   Extraordinary and temporary financial support
The bank confirmed overnight that it would receive the necessary "extraordinary and temporary financial support" from the bailout package.

Italian Prime Minister Paolo Gentiloni said that his cabinet had approved the rescue and would be using part of the fund.

He said the first step in the process will be to strengthen Monte dei Paschi's ability to procure liquidity. In addition, Gentiloni said the bank can press on with a sale of state-backed bonds.

Monte dei Paschi said that its attempt to raise money from private investors had "not ended with success".

"In particular, there were no manifestations of interest on the part of an anchor investor who could have put a significant investment in the bank and this negatively affected decisions of institutional investors," it said.