Rescue of the Italian Monte dei Paschi could take months – Televisa News

MILAN, Italy, dec. 22, 2016.- A state bailout of the Italian bank Monte dei Paschi di Siena could take up to three months, according to published a journal on Thursday, while it is expected that the lender oldest in the world give failed your own plan of rescue and ask for help to Rome.

Monte dei Paschi, the third largest bank in the country, only has funding for another four months and you risk being dismantled by the european regulators, if it is not able to get rid of a mountain of bad loans and capture 5,000 million euros in new capital.

A failure like this, would shake the foundations of the banking industry of Italy, the fourth power of the euro zone, which has a third of the bad debt of the block. It could also lead to a downgrade of the credit ratings sovereign and assume a blow to the euro.

The new Italian Government, formed to do only 10 days, are ready to organize a rescue on Thursday or Friday, after Monte dei Paschi announced that it has not managed to find a principal investor for its rescue plan.

The newspaper of the Italian financial Il Sole 24 Ore said that the rescue plan could take between two and three months, starting with a government guarantee of the loans own Monte dei Paschi to ensure that you do not run out of cash. The bank has also been losing a large volume of deposits.

Monte dei Paschi, affected by acquisitions reckless and his inability to deal with debt of poor quality accumulated during the global financial crisis, said this week that they would be out of cash in four months. Days earlier had estimated that there were still 11 months.

According to the rescue plan, a guarantee win time for the government of the Italian prime minister, Paolo Gentiloni, secure the approval of the European Central Bank and eu authorities, reported Il Sole.

The plans of Rome would have to comply with the standard of the European Union that private investors will suffer losses before they can be used taxpayer funds to save the bank, an issue is politically explosive, since some 40,000 retail investors have bonds of Monte dei Paschi.

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