Monte dei Paschi: survival plan unveiled.
(CercleFinance.com) - Banca Monte dei Paschi di Siena, the oldest bank in the world, presented its plan through to the year 2021.
This follows on from yesterday's decision taken by the European Commission, which authorised the government to inject 5.4 billion euros into the institution, which is also the fourth largest bank in Italy.
This is a huge breath of fresh air for Monte dei Paschi, whose 5 billion euro capital increase initiated last year failed, which symbolises the setbacks of the Italian banking sector as a whole. Remember that the latter has been plagued for many months by bad debts that have resulted in major concerns and have even led to fears of a "domino effect".
The state rescue of Monte dei Paschi should permanently remove the threat of bankruptcy. In terms of numbers, it would enable the bank to generate earnings of around 1.2 billion euros by 2021, against a loss of 3.24 billion euros last year.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
This follows on from yesterday's decision taken by the European Commission, which authorised the government to inject 5.4 billion euros into the institution, which is also the fourth largest bank in Italy.
This is a huge breath of fresh air for Monte dei Paschi, whose 5 billion euro capital increase initiated last year failed, which symbolises the setbacks of the Italian banking sector as a whole. Remember that the latter has been plagued for many months by bad debts that have resulted in major concerns and have even led to fears of a "domino effect".
The state rescue of Monte dei Paschi should permanently remove the threat of bankruptcy. In terms of numbers, it would enable the bank to generate earnings of around 1.2 billion euros by 2021, against a loss of 3.24 billion euros last year.
Copyright (c) 2017 CercleFinance.com. All rights reserved.