The European Central Bank (ECB) rejected on Friday the request submitted by the Italian bank Monte Paschi di Siena (BMPS) to obtain a term for the increase of capital, a necessary step for your plan of rescue, indicated press sources, Italian.
Just disclosed the information, to the middle of the afternoon, the title fell by over 10% on the Milan Stock exchange.
The plan of rescue of Monte dei Paschi had the backing of the prime minister Matteo Renzi, who officially resigned from the Wednesday to his office after losing a referendum on their constitutional amendment.
The BMPS is the oldest bank in the world, was founded in 1472 and is the weakest link of the Italian banking system so that its fragility is worrying the markets.
The board of directors of the bank convened an immediate meeting immediate.
Questioned by the AFP, BMPS, and the ECB refused to comment on any information on the subject.
at the same time the number-one BMP, Marco Morelli, was received this Friday at the Finance ministry, to take stock of the situation, indicated to AFP sources close to the ministry, which now refuse to respond officially on the subject.
If the news is confirmed, the plan of rescue of the Italian bank is committed and it can trigger a crisis in the Italian banking system.
The Italian government supported a “recapitalization preventive” which would include a contribution of the shareholders.
The third Italian bank had asked the ECB term until 20 January, instead of December 31, for a share capital increase.
however, the political crisis generated by the resignation of the head of government, complicated the situation.
The third financial institution, the Italian recorded the worst results in the stress tests published in late July by the european banking authority.
The value of the shares of BMPS was reduced by more than 80% from the beginning of 2016, so he put in place a rescue plan integrated with the sale of the 27.6 million euro of problem loans and a capital increase of about € 5 billion.
The first part of that plan, an operation for the voluntary conversion of the bonds, has already raised more than a billion euros.
however, there is still 4 billion euros.
The operation of capital increase had to be launched last week, according to the plan announced by Morelli in November.
But the political instability caused by the resignation of the Renzi cooled to investors, including funds of Qatar, Qia, willing to invest a billion euros.
The bank wanted more time as well as the appointment of a new government in Italy to reassure investors.
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