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Daily Digit: Monte Paschi's revival plan

Tuesday, October 08, 2013 - 00:59

Oct 8 - Italy's third largest bank, Monte dei Paschi, has agreed to a 2.5 billion euro capital increase demanded by Brussels as it fights to avoid nationalisation. Hayley Platt reports.

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2.5 billion euros is today's daily digit - the extra capital Monte dei Paschi has agreed to raise to avoid nationalisation. The revised plan - the first one was rejected by EU regulators - includes cutting an extra 3,400 jobs. That takes the total losses to around 8,000. It must also make savings of 400 million euros in order to qualify for a European Commission bailout. The world's oldest bank came close to collapse last year due to the euro zone debt crisis. It's also been the subject of a judicial investigation over its purchase of a rival in 2007 and loss-making trades in derivatives which followed the deal. The troubled Tuscan bank says it aims to repay the state loans fully and make a net profit of 900 million euros by 2017. It's shares rose 6 percent after the plan was agreed, it's highest in nearly two months.

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Daily Digit: Monte Paschi's revival plan

Tuesday, October 08, 2013 - 00:59