SIENA, Italy, April 10 (Reuters) - The head of Banca Monte dei Paschi di Siena said on Wednesday weak economic growth in Italy would affect the lender’s performance this year.
Asked about the impact of a government forecast of just 0.1 percent economic growth for this year before any corrective measures are taken, Chief Executive Marco Morelli said he believed the outlook would certainly impact Monte dei Paschi and the whole banking sector.
But he added he remained confident that at the end of the year “the bank’s recovery path will continue, clearly in a context that is very, very difficult”.
Morelli said Banca Monte dei Paschi di Siena’s ability to issue subordinated bonds again depended on how quickly the bank was able to cut its bad loans and on the government setting out its plan for exiting the lender’s capital.
The government must give details of its exit plan by year-end. (Reporting by Silvia Ognibene, editing by Silvia Aloisi)