Italy's BMPS bank to go with private sector-led rescue

[MILAN] Italy's troubled Monte dei Paschi di Siena (BMPS) bank on Sunday announced it would go ahead with plans to seek a private sector-led rescue.

The bank's stock had tumbled after media reports said the European Central Bank had denied it more time to raise the cash it needed to avoid being wound down, triggering speculation that BMPS would be forced to seek a government bailout.

In a statement published late Sunday after a board meeting of the world's oldest bank in Milan, it said it had "decided to go ahead" with plans to seek a market-led rescue by December 31.

BMPS had asked the ECB to be given until January 20 to avoid collapse, as the eurozone's third-largest economy was thrown into instability by Prime Minister Matteo Renzi's resignation.

AFP