Monte dei Paschi: agreement reached on restructuring.
(CercleFinance.com) - Italy yesterday reached an agreement in principle with the European Commission on the restructuring plan of the troubled bank Monte dei Paschi di Siena.
The recapitalisation plan will enable Italy to inject capital into Monte dei Paschi as a precaution, in line with EU rules, while pushing the bank to undergo a deep restructuring, including cleaning up its balance sheet.
It is expected that Monte dei Paschi will have its entire non-performing loan portfolio on market terms, reducing the risks on its balance sheet.
Concurrently, the Italian bank will have to take a number of measures to substantially increase its efficiency, with senior management to be subject to a salary cap, as required under EU State aid rules, corresponding to 10 times the average employee salary.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The recapitalisation plan will enable Italy to inject capital into Monte dei Paschi as a precaution, in line with EU rules, while pushing the bank to undergo a deep restructuring, including cleaning up its balance sheet.
It is expected that Monte dei Paschi will have its entire non-performing loan portfolio on market terms, reducing the risks on its balance sheet.
Concurrently, the Italian bank will have to take a number of measures to substantially increase its efficiency, with senior management to be subject to a salary cap, as required under EU State aid rules, corresponding to 10 times the average employee salary.
Copyright (c) 2017 CercleFinance.com. All rights reserved.