October 26, 2014 / 11:29 AM / 5 years ago

Monte Paschi has 2.1 billion euro shortfall after EU stress test: Bank of Italy

ROME (Reuters) - Banca Monte dei Paschi di Siena needs an additional 2.1 billion euros and Carige needs 814 million euros to meet the requirements of the European Central Bank’s stress tests, the Bank of Italy said on Sunday.

The two are among four Italian banks that failed the ECB stress tests and did not make up the shortfall through capital increases in 2014.

Two other banks, Banca Popolare di Milano and Banca Popolare di Vicenza have since made up the shortfall with additional measures to strengthen their capital base. Banca Popolare di Milano has a 713 million euro surplus, while Banca Popolare di Vicenza has a 30 million euro surplus.

The 2.1 billion euros required by Monte dei Paschi will fall to 1.35 billion euros once the bank repays so-called Monti Bonds, a special form of state-backed loan, the Bank of Italy said.

Reporting by Alessandra Galloni, Giselda Vagnoni and James Mackenzie

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