Italy seeks ‘long’ extension to Monte dei Paschi deadline -Breaking
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Valentina Za and Giuseppe Fonte
ROME (Reuters – A senior official at the Italian Treasury stated Tuesday that the extension of the deadline for Italy’s Monte dei Paschi (MPS), to private hands would be sufficient to allow the bank to relaunch itself and draw new investors.
Alessandro Rivera (Treasury Director General) told Parliament that Rome will eventually sell its share in the bank it had rescued in 2017.
Italy and the European Union are in discussions about the date for reprivatisation MPS.
Rivera stated that “keeping it in the state’s hands indefinitely” was not an option, and that the EU had learned from failed negotiations with UniCredit that it was not currently possible to reach a deal that meets the legal and economic requirements.
Rivera has not clarified how long Italy would like to extend the deadline. Reuters has been told by a source familiar with the situation that Rome would like to extend the deadline for years.
Rivera stated that they believe it necessary to consider extending the term. Rivera explained that by adequate Rivera means a long enough time period to put in additional measures to strengthen the bank, improve its profitability outlook, and so on.
Italy plans to finalize some measures that it devised in order to make the UniCredit sale process more smooth after the failed UniCredit proposal. Sources tell Reuters that it plans to eliminate MPS from its remaining problem loans and any other non-ordinary legal risk, as well as boost its capital.
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