Draghi hope that helps”: Thanks to the multibillion-dollar bond purchases by the ECB and the Italian “Bank rescue plan” can the crisis Bank Monte Paschi rescue
The Italian crisis Bank Monte Paschi can hope to be rescued by the state. The government had on Wednesday from the Parliament plans to approve, after which you can a 20 billion Euro to support in a wrong position causes institutions to borrow. Monte Paschi needs until the end of the year, five billion euros in fresh capital. It is questionable whether this money comes together as planned from the side of the private. According to insiders plans to win with Qatar, an anchor investor for the planned capital increase were dashed. Against this Background, the interest of the investors had a total of mau.
Monte Paschi had set great hopes on a commitment of the investors from the Gulf, which should pump about a sovereign wealth Fund of one billion euros, one of the oldest money in the house. Now is the time to be running the Bank of which: Institutional investors, to cope with 65 percent of the majority of the capital increase, have only until Thursday (14.00) time for the purchase of new shares. For existing shareholders and retail investors, the time limit is expired. This also applies to an offer to investors to exchange the bonds into shares.
Multiple candidates for government assistance
Perhaps investors were therefore cold feet, because the situation is in the case of the Bank’s more critical than previously assumed. The money is only sufficient for four months, said the Institute. So far it has been eleven months. The share of the Bank had to be suspended on Wednesday, after sharp price fluctuations in multiple by trade. They broke in at times to a record low of 15 euros. In the afternoon, it was 8.3 per cent in the Minus at 17.00 Euro.
Now all eyes are on the state: According to the Ministry of economy could be secured with the billion package for the banking sector, the liquidity in the financial system and the part of thin capital of the institutions ceiling are padded.
in addition to Monte Paschi also apply to the smaller banks, Banca Popolare di Vicenza and Veneto Banca, as potential candidates for government assistance. If Italy should jump into the breach, it is important to steer clear of the rocks: Because, according to the EU regulations, must also carry private investors losses, if the state helps a money house. In the case of Monte Paschi, tens of thousands would be affected small investors. If you were asked to pay, this would be for the new Prime Minister, Paolo Gentiloni, a politically tricky maneuver, especially since it can come next year to new elections.
Minister reassured private investors
economy Minister Pier Carlo Padoan tried against this Background, to take the small investors Fears. The government is trying to protect you, in line with EU-regulations: “in the event of intervention by the government, there will be no or only a minimal impact for the saver.”
But in the case of the increased government debt related to bailout Italy and threaten other consequences: for the refinancing operations of banks at the ECB, major credit rating grade of “A” which stands for a safe investment in the credit rating Agency DBRS to Wiggle. The Canadians want to on 13. January to decide whether the stars maintained or Italy credit rating downgrade.
DBRS confirms that the country has a better credit rating than the rest of the governing agencies. The “A should be conceded”, would increase the cost of the Italian banks, if you stock up at the European Central Bank against collateral, with money.