Italy court rejects attempt to block Monte Paschi bailout

ROME Fri Feb 22, 2013 4:02am EST

The entrance of Monte Dei Paschi bank headquarters is pictured in Siena January 24, 2013. REUTERS/Stefano Rellandini

The entrance of Monte Dei Paschi bank headquarters is pictured in Siena January 24, 2013.

Credit: Reuters/Stefano Rellandini

ROME (Reuters) - An Italian court on Friday rejected a consumer watchdog attempt to block a government plan to lend 3.9 billion euros ($5.16 billion)to troubled lender Banca Monte dei Paschi di Siena (BMPS.MI).

In a judicial ruling, the Rome region court rejected the bid by consumer rights' association Codacons to have the loans blocked on grounds the bailout was harmful to Italy.

Codacons, which wants the world's oldest bank to be nationalized, may appeal the decision to a higher tribunal.

Tuscan lender Monte Paschi was forced to request state aid last year after failing to meet tough capital requirements set by the European Banking Authority. ($1 = 0.7563 euros)

(Reporting by Virginia Alimenti, Writing by Naomi O'Leary)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.