Economy Minister Pier Carlo Padoan went today to meet the head of the European Antitrust, Margrethe Vestager. Topic of the day is once again the Monte dei Paschi. The two discussed how to implement the precautionary recapitalization of the Tuscan bank.
MPS has in fact requested the support of the State following the calculations deriving from the examination of the European Central Bank which, at the end of 2016, calculated the capital shortfall as a result of the European stress test at 8,8 billion.
The shortfall should be covered in part by the forced conversion into shares of subordinated bonds for 4,3 billion, based on the rules established by the "burden sharing", an inevitable procedure for having access to public money. The Ministry of the Economy, on the other hand, will put 4,5 billion euros on the plate, to which another 2 will be added to compensate savers who hold subordinated bonds, so as to avoid legal disputes for any inappropriate sales.
“The meeting went very well. We continue to work on the technical details", Padoan said at the end of the Ecofin. "We are working to minimize times but also to find stable, lasting and solid solutions", he added, underlining that "there are no deadlines" to arrive at an agreement with the Commission. The process towards the precautionary recapitalization continues.
