ROME must hand Italy’s oldest lender Monte die Paschi di Siena (MPS) a controversial bailout or face a financial crisis that could destroy its economy and the eurozone.
The troubled bank is teetering on the edge of a full-scale meltdown after failing to raise £4.2billion from private investors in a last-ditch effort to survive without state intervention.
To stop panic ripping through Italy’s banking system, the government is now set to inject €20bn (£17bn) into the most vulnerable lenders.
Prime Minister Paolo Gentiloni’s new government is expected to meet this week to issue an emergency decree to pump cash into MPS in an effort to avoid disaster.
MPS is saddled with around €40bn of bad loans on its books and was judged to be the weakest bank in Europe earlier this year by the European Central Bank (ECB).
Yesterday the lender announced it only had enough cash reserves to keep it going for another four months, with just €11billion (£9.27bn) of liquidity left.
Full article: ITALY CRISIS: Monte dei Paschi to get staggering €20BN government bailout (Express)