July 16, 2018 / 4:24 PM / 9 months ago

Monte dei Paschi says granted state guarantee on bad loan securitization sale

MILAN (Reuters) - Italian bailed-out bank Monte dei Paschi di Siena (BMPS.MI) said on Monday it had been granted a state guarantee on a 24 billion euro ($28 bln) bad loan securitization sale which is a key plank of its restructuring plan.

The state guarantee wraps the least risky portion of the deal — 2.92 billion euros in senior notes issued by the securitization vehicle that purchased the bad loans.

Italy introduced the state guarantee scheme back in 2016 to ease bad loan sales by banks.

Reporting by Valentina Za; Editing by Crispian Balmer

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