(Adds dropped words "the state" in first paragraph)
MILAN Jan 7 Italy's Banca Monte dei Paschi di
Siena can return to profit and can avoid having the
state take a stake in it, the chief executive of Italy's
third-largest bank was quoted saying in a newspaper interview on
"We need to re-create the conditions so we can return to
profit, and all the decisions we have taken in recent months go
in that direction," said Fabrizio Viola in an interview with
Rome daily Il Messaggero.
"Only by returning to the stable asset base and
profitability that has characterized the bank for its long
history can we avoid public support."
Last year the bank was forced to request state aid after it
failed to meet tougher capital requirements set by the European
Under the scheme the bank will issue 3.9 billion euros ($5.1
billion) of bonds to the Italian treasury. If the bank posts a
loss, the treasury may have to take a stake in it.
(Reporting by Jennifer Clark; Editing by David Holmes)