Italy govt says Monte Paschi capital hike to reach 2.5 bln euros
ROME, Sept 8
ROME, Sept 8 (Reuters) - A revised bailout plan for Italy's Monte Paschi bank will include a 2.5 billion euro ($3.29 billion) capital increase to be completed during 2014 as well as cost cuts and a gradual reduction in its government bond portfolio, the Economy Ministry said on Sunday.
The recapitalisation, which more than doubles an originally planned capital hike, will aim to repay a significant portion of the specially designed bonds - termed New Financial Instruments - issued by the bank and bought by the Treasury ahead of the schedule in the current bailout plan, the ministry said in a statement.
The plan will be considered by the bank's board and approved by the government and the Bank of Italy before being submitted to European Union authorities for clearance under state aid rules. The ministry said it expected the approvals process could be completed within two months. ($1 = 0.7600 euros) (Reporting by James Mackenzie)
- Target stores' customers hit by major credit card attack
- UPDATE 3-Saab wins Brazil jet deal after NSA spying sours Boeing bid
- As Modi storms into India's election, a quiet alternative emerges
- Facebook, Zuckerberg, banks must face IPO lawsuit: judge
- U.S. prosecutor defends treatment of Indian diplomat |