The ECB rejects the request of bank Monte Paschi more time to get capital – Investing.com Spain

MILAN (Reuters) – The European Central Bank rejected a request by the troubled Italian bank Monte dei Paschi (MI:) more time to raise capital, said a source on Friday, in a decision that will increase the pressure on Rome to rescue the entity.

The third largest lender of the country and the oldest in the world requested an extension of three weeks -until the 20th of January – to try to organize a rescue plan of 5,000 million euros, funded privately to the political uncertainty, which suffers from Italy.

the supervisory board of The ECB rejected the request in a meeting Friday with the argument that a postponement would be of little use and that it is time for Rome to take a step forward, said the source.

it Is expected that the Executive Italian to intervene to recapitalize the bank and to avoid the risk of the end of its operations.

The bankruptcy of Monte dei Paschi could threaten the savings of thousands of investors, affect the banking sector and cause a financial crisis in the third largest economy of the euro zone.

Italy faces the possibility of an expedited election and the prospect of the arrival to power of a party with anti-european politics after the prime minister, Matteo Renzi, resigned this week after the heavy defeat in a referendum his plan to reform the Constitution.

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