ECB gives green light to Monte dei Paschi for demerging NPLs

Italie
On the 09/04/20 at 8:01AM

The Italian bank Banca Monte dei Paschi di Siena announced Wednesday evening that the European Central Bank (ECB) had approved its plan to demerge several billion euros in non-performing loans. The plan was approved on the condition that the bank, which is controlled by the Italian state, shores up its capital to meet regulatory requirements. The Italian government may subscribe up to 70% of the bank’s capital instruments, while private investors must buy up to 30% of them. In June, Monte dei Paschi approved the plan to demerge about €8.1bn in non-performing loans.