New Italy PM says ready to intervene to save banks
[ROME] New Italian Prime Minister Paolo Gentiloni confirmed Tuesday that his government was prepared to come to the aid of the country's third largest bank if private rescue efforts fail.
"The government is ready to intervene to guarantee the stability of the (banking) institutions," Mr Gentiloni said in a statement to parliament outlining his fledgling administration's priorities.
He added: "We have to guarantee the stability of the banks and citizens' savings".
Mr Gentiloni's statement confirmed earlier signals from the government that it stands ready to help recapitalise the troubled Monte dei Paschi di Siena bank (BMPS), should it fail to raise enough money from private investors to complete a badly needed strengthening of its balance sheet.
The bank, seen as being in danger of failing if it is not recapitalised, needs to raise five billion euros (S$7.562 billion) to avoid a state-subsidised rescue.
If that happens there are fears retail savers might suffer losses with EU rules potentially preventing the government from fully covering their losses.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Economic leaders of South Korea, Japan, China say FX volatility is a risk
US automakers win extension on use of Chinese graphite in EV tax credits
US service sector contracts in April; price pressures up
Thaksin’s daughter calls central bank independence an ‘obstacle’
US jobs growth slows in April; jobless rate up to 3.9%
Magnitude 6.0 quake strikes Philippines, aftershocks and damage expected