Published on 29/06/2020 11:34:49 AM | Source: Reuters

Monte Paschi board seen meeting Monday on plan to shed bad loans - source

Posted in Top Stories| #World Market #Italy

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel 

Download Telegram App before Joining the Channel

ROME  - The board of Monte dei Paschi di Siena is expected to meet on Monday to approve a plan to reduce its burden of bad loans, a source familiar with the matter said, without giving further details.

Daily Il Messaggero reported that under the plan the Tuscan lender would offload 8.9-9.0 billion euros ($10.10 billion) in gross impaired loans at net value of 4.2-4.3 billion euros.

The paper said the bank would de-merge the impaired loans together with 1-1.1 billion euros in equity and 3.2 billion in debt from a five-year loan granted by JPMorgan and UBS.

Italy's Treasury, which owns 68% of Monte Paschi, has been seeking to help it reduce impaired loans to around 5% of total lending to make it a more an attractive merger partner, without imposing excessive losses on the fragile bank.


(Reporting by Valentina Za, writing by Gavin Jones)