Monte dei Paschi tries a small – shy – rebound, after the collapse of Thursday 17 May and the losses remedied on Friday. In just two days, the accumulated decline exceeds 13%, considerably reducing the gains obtained thanks to the accounts for the first quarter, closed with a profit of 188 million euros. In today's session, iMPS stock gains 1,2% outperforming the Ftse Italia Banche (+0,44%) and beating many colleagues in the sector, weighed down by the coupon detachment day.
The Sienese bank is therefore trying to put behind it the two nightmare days experienced on the stock exchange after the publication of the Government contract between M5s and Lega, is with a direct reference to the bank seems to call its future into question just when the restructuring plan was beginning to bear fruit. Especially since, changing the cards on the table today could involve a very big risk, not only for the Tuscan institute, but also for savers, who would run the danger of facing that bail-in which the Salvini-Di Maio duo consider "the evil of evils".
After two days of silence, he also spoke on the matter today the CEO of Mps, Marco Morelli, that through an interview with Corriere della Sera, reminds Lega and M5s of a small detail that perhaps the government contract has overlooked: “The recovery of the Monte will not be something that materializes in the next few quarters. The plan lasts for four years, until December 31, 2021”.
The Sienese institute has in fact implemented a multi-year plan, receiving the go-ahead from the European Commission State aid of 5,4 billion euros to carry out the precautionary recapitalisation. “We are following a very narrow path – continued Morelli – We cannot digress. By 2019, the Treasury Ministry must present its plan to exit the MPS capital to the European Commission, which will be finalized by 31 December 2021, the plan's conclusion date".
The CEO's warning is therefore clear: if Monte dei Paschi does not respect the commitments undertaken with Brussels, it could pay a steep bill: 5 billion euros in fact. “We cannot get out of this path and we are well aware that engagement with the European Commission not only the bank has taken on the plan but also the Ministry of the Economy. It is the Ministry of the Economy, the Italian state, that has committed itself to the Commission”, concludes Morelli. Maybe the new government would do well to think about it.
