The actions of the bank’s oldest and most troubled of Italy, Monte dei Paschi, were suspended Wednesday morning after that there were new concerns about its precarious liquidity position.
After a day of relatively optimistic for the actions of MPS on Tuesday, the bank repeated the warning about the deterioration of its liquidity situation on Wednesday, and I am confident to overcome this problem in four months. The shares fell 16 percent after it has stopped twice in one trading session as dismal.
The bank said you will get around 11 billion euros of liquidity in march, when it is expected that the net position will become negative.
it Is expected that the lack of liquidity is deteriorating and to generate a deficit of 15 billion euros in the fifth month, that will be added to the hollow of 740 billion euros in 12 months, said the bank.
investors are nervous they kept the destiny of the agreement of cleaning of MPS by the private sector of 5 billion euros that it has to be complete for the end of the year and thus able to avoid a financial bailout by the State.
even Though the nerves were increased on Wednesday, the warnings of the bank’s liquidity are not something new. In a prospectus that was published last Friday, MPS said that it’s not going to be able to comply with liquidity requirements without receiving a new injection of funds in a month, after the resignation of the Italian prime minister, Matteo Renzi, at the beginning of December.
The bank lost 14 billion euros, or 11 percent of its total deposits, from January to September of 2016. Its liquidity would fall below the level required if you were to suffer another leak of deposits of 10 billion euros under the scenario of "tension "calculated by the European Central Bank.
In the prospectus said: "The liquidity situation of the bank deteriorates progressively until they reached, after the constitutional referendum of December 4, a period of 29 days before the bank is unable to meet the requirements of liquidity without requiring the help of new interventions.
"This term was calculated by applying a situation of tension where the bank has an output of 10 thousand to 300 million euros per month".
A person close to the situation sought to calm concerns, he said that the bank will have a solution of their problems within a period of three days, either through a bailout of the public sector or the private sector. The actions of MPS lost more than 87 percent of its value this year and operate to 15.7 euros.
The index of the banking-general of Italy fell more than 1 percent on Wednesday, but remained on track to achieve its best month in seven years after the government of that country asked Parliament to authorize up to 20 billion euros of taxpayer funds to prop up the status of their decayed banks.
No comments:
Post a Comment