Mps receives the green light for the bad bank and the share inevitably suffers, positively: just before 12, le shares of the Sienese bank they jump by 17% to 1,363 euros. The good news for Monte dei Paschi was given by the European Commissioner for Competition, Margrethe Vestager, who indicated that she had "given comfort to the Italian authorities" on the creation of a bad bank into which part of MPS' non-performing loans would flow . Therefore, it is now official that Brussels has no problem with this solution: "There are contacts in progress - added Vestager -, from what we can see it is not a public aid operation and it was decided before the coronavirus crisis: it is up to each State to decide whether or not to notify, so far Italy has not made a notification”.
Already at the opening of the session, the Mps stock had gained 8% on the rumors, which were later confirmed by the words of Vestager. The EU Commission would therefore give the green light to the spin-off of 10 billion euros of non-performing and non-performing loans. An operation that according to Equita would make it possible to reduce the Npe ratio of Mps from 13,2% recorded at the end of the first quarter to 2,1%. Although the details are not yet known, according to Equita analysts it is already possible to hypothesize "that the transfer price of the operation could be close to market values". Furthermore, following the EU's approval of the measures to support the economy in the current Covid-19 emergency, the government could actually recapitalize the bank by 31 December 2020 without resorting to the so-called burden sharing of shareholders or of subordinated creditors, "returning the Cet1 to a level well above the buffers".
According to Equita, the operation "would make Mps more attractive from an M&A perspective, favoring an exit strategy of the Mef, even if the possibility that the government could aim for full control to complete the exit in longer times cannot be excluded”.
