ECB stated that the Bank Monte dei Paschi needs to raise US$9.200 M – AméricaEconomía.com

The European Central Bank said Monte dei Paschi that you need to close a capital shortfall of 8,800 million euros (US$ 9.200 million), more than 5,000 million euros estimated previously, reported this Monday the Italian bank, confirming what sources had told Reuters.

on Friday, the Italian government approved a decree for the rescue of Monte dei Paschi, after the third-largest bank in the country failed to win the backing of investors for a desperate increase of capital by 5,000 million euros.

The bank said on Monday that he had officially requested the Friday the ECB to move to a “recapitalization, as a precautionary measure.

The recapitalization prudential is a type of state intervention in a bank with problems, but that is still solvent. Involves a rescue initial on the part of investors and shareholders, although the Government may also buy shares or bonds under market conditions stipulated by the state aid scheme of the European Union.

In its response, the ECB said that the calculation of the capital that you think you need the bank on the basis of a deficit that arises from the test of solvency which is made in Europe to the major banks this year.

In these tests, Monte dei Paschi was the only Italian bank that did not meet the criteria in an adverse scenario. The ECB noted that the bank is solvent, but explained that the liquidity position has deteriorated rapidly from the end of November and the 21st of December, the company said.

The problems of the bank were initiated many years ago, but successive Italian governments have not addressed the issue, which became a political taboo this year with the new rules of the EU prohibit state bailouts unless private investors take the losses first.

The European Commission said Friday that it would work with the Italian Government to establish the conditions for a bailout of Monte dei Paschi.

But on Monday, the member of the ECB Jens Weidmann noted that the plans for a state bailout of Monte dei Paschi should be evaluated carefully because there are still many questions without answer.