REUTERS/ Monte dei Paschi di Siena
Italian crisis Bank Monte dei Paschi: The state, the Institute is expected to
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The Italian government is considering up to 20 billion euros in new debts, to be able to in case of emergency, ailing banks and save. A proposal of the Cabinet of Ministers must now received the blessing of Parliament, as the government explained. It was a precautionary measure, and stressed the Prime Minister, Paolo Gentiloni, in Rome. “We will see if it is necessary.” He called on all opposition parties to cooperate.
to increase The national debt could be necessary to implement measures aimed at the protection of savers, should realize the risks in the financial sector, – stated in the message of the government.
The Italian banking sector is hard to beat, the money houses are groaning under a mountain of bad loans. Particularly critical is the situation of the Bank Monte dei Paschi di Siena, which is attempting a capital increase, to be able to loss at the time of removal of bad loans to compensate for. By the end of the year, they must meet the agreed rescue plan.
Italy has the third highest public debt in the world
On Monday the sale of new shares, to provide the Bank with fresh money and the state help to avert launched. Up to the end of the year, the equity should be increased to five billion euros. Failing that, could ask the Bank to state help to agree on what rules, however, the European Resolution hard
This, first of all, owners and creditors will be asked by banks before the taxpayers step in. The Problem in Italy is that many small investors have invested their savings in these papers. The EU Commission had already indicated, to assist in an emergency, Italy, to design a solution in line with European law.
Italy has, after the USA and Japan, in absolute Numbers, the third-highest public debt in the world. Overall, the debt of around 2.2 trillion euros. In relation to the gross domestic product, Italy’s debt load, most recently with 135.5 percent, the second highest in the Euro Zone after Greece.