Don’t miss the latest developments in business and finance.

Italy set to put in around 6.5 billion euros to salvage Monte Paschi - sources

Image
Reuters ROME/MILAN
Last Updated : Dec 27 2016 | 4:07 PM IST

ROME/MILAN (Reuters) - The Italian government is likely to have to put in around 6.5 billion euros ($6.79 billion) to rescue Monte dei Paschi di Siena, three sources close to the matter said on Tuesday.

An additional 2-2.3 billion euros will come from the conversion of subordinated bonds held by institutional investors.

The European Central Bank has told the bank its capital shortfall has risen to 8.8 billion euros, from 5 billion euros indicated previously, the bank said on Monday.

($1 = 0.9571 euros)

(Reporting by Stefano Bernabei and Silvia Aloisi; editing by Agnieszka Flak)

Also Read

First Published: Dec 27 2016 | 3:56 PM IST

Next Story