World’s Oldest Bank’s Says Recapitalization Needs Higher than Earlier Forecasts

Siena, Struggling Italian bank Monte dei Paschi di Siena (BMPS) said today that the European Central Bank (ECB) estimated 8.8 billion Euros as the sum necessary to bailout the bank.

The figure is three billions than the previously estimated figure. The ECB made those comments in a letter to the Italian Ministry of Finance, the World’s oldest bank said today.

The eurozone central bank indicated in the letters that the results of stress tests in 2016 showed that the capital needs of BMPS at 8.8 billion Euros, AFP reported today.

Italy approved Friday a state-funded rescue of Tuscan lender BMPS, but did not reveal the bailout figure. The state plans to dip into a debt-financed 20-billion-euro war chest that was approved by parliament last week. Around a quarter of the rescue fund is going to be required immediately to inject cash into BMPS, which confirmed Thursday that it had failed to raise the capital it needed from private investors.

Source: Qatar News Agency