The share of Banca Montepaschi collapses on the stock exchange, which is mid-morning the worst of the Ftse Mib, with a drop of almost five points. The slip is related to the decision of Standard & Poor's, which put the rating on a negative credit watch long-term BBB and the short-term A-2 of Mps. The same decision is also made for subordinated, junior and hybrid instruments.
Meanwhile it has been achieved a "substantial" agreement on the debt between the MPS Foundation and the banks: the "finalization" is expected in the next few days. This was communicated by Palazzo Sansedoni, stating that "coinciding with the expiry on June 18 of the standstill agreements with the lending banks, the negotiation relating to the rebalancing of the foundation's overall financial debt has reached an agreement whose finalization is expected in the next few days, with the definition of the technical details and subject to approval by the respective decision-making bodies".
The Foundation "confirms that, as a result of the rebalancing, when it has been definitively approved and finalized, the foundation will make an initial payment of 664 million euros, so that the residual debt exposure will amount to 350 million". The debt rebalancing "envisages the completion of the repayment of the residual debt exposure by 30 June 2017, with the faculty for the foundation to extend this deadline to 30 June 2018".
