Monday, December 26, 2016

Monte dei Paschi: Italian crisis Bank needs more money – business week

The Italian Bank Monte dei Paschi needs, apparently, more money than first thought.

The Italian crisis Bank Monte Paschi needs more money than previously thought. The European Central Bank (ECB) have required a capital of 8.8 billion euros, determined, and informed the money house on Monday. So far it has been assumed to be five billion euros. The financial situation between end of November and the 21. December has deteriorated sharply, it said.

Italy will support its third-largest Bank, with government funding. The already over-indebted country will need to shell out 20 billion euros. However, whether the sum is sufficient, is doubtful. Answers to the most pressing questions.

Monte Paschi threatens to collapse under a mountain of bad loans. After the third-largest money house in Italy, not got the for the renovation needed money for investors, called the Italian government last week, a 20 billion dollar Fund to stabilize the banking sector.

Bundesbank President Jens Weidmann warned about hasty state aid. State funds are only provided as a last resort, he said the “Bild”newspaper, according to a preliminary report from the Tuesday edition, and referred to the appropriate EU rules. “For the Italian government’s intended action, the Bank must be in the core of an economically healthy,” he said. “The money must not serve to cover foreseeable losses.”


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