Il Monte dei Paschi di Siena plans to repay 4 billion of loans to the ECB this month. This was stated by the Bank in the written responses to the shareholders prepared for the balance sheet meeting underway in Siena. At the end of March, the institute had group debt to the ECB for 28 billion. Debt formed with the two three-year Eurotower Ltros. “A gradual repayment of the exposure is envisaged in 2014 which will be increased to 24 billion at the end of April”, reads the document.
The managing director Fabrizio Viola, in his speech to the ordinary shareholders' meeting, called to approve the financial statements, said that MPS has two problems: capitalization and liquid assets. The latter – according to the CEO – has improved a lot, even if the conditions need to be created to enable the three-year loans from the ECB to be repaid.
As for the ., the gap was temporarily filled with 4 billion government loans (the Monti Bonds) and the 5 billion capital increase, which will be approved on May 21st and should make it possible to repay around 3 billion in public aid.
According to the Board's report presented at the meeting, the recapitalization operation could be completed by July, while the cost of repaying state loans could cost 3% more. Viola then recalled that the 2013-2017 business plan provides for a return to "significant profitability" and a return on tangible capital (Rote) of 9%.
About some non-performing loans, Monte's number one cited the cases of Sorgenia, the Cir Group company in crisis, towards which Mps has an exposure of 600 million, and the case of Pastificio Amato, on which pending criminal proceedings, which could see the Sienese Bank to appear as a civil party.
Meanwhile, the leader of the Five Star Movement, Beppe Grillo, took part in the meeting as a small shareholder and attacked the Democratic Party, defined as the "red plague" as guilty of having "control" of the Bank and of having caused, with the collapse compared to the 1999 quotation, "the greatest destruction of value in the history of the country".
Grillo has read part of a ruling by the Court of Siena which dismissed the Bank's position for the Antonveneta operation, attributable only to the former top management of the institute. In the ruling, the magistrates write that there was an interest unrelated to that of the Bank in the deeds of Mussari and Vigni, who decided to acquire Antonventa.
Grillo then invited the members of Mps to reject the 2013 budget and the president Alessandro Profumo to sue Santander for the behavior of the president of the Iberian institute, Botin, in the sale of Antonveneta to Mps.
At the beginning of the afternoon, MPS shares gained 1,37%, a 0,2511 euro.
