Banca Monte dei Paschi di Siena SpA chief executive officer said Italian government bond spreads need to fall by the end of the year to avert “strong” contagion to the economy, La Repubblica reported.
The European Central Bank, the European Financial Stability Facility and the European Stability Mechanism must purchase government bonds in the primary and secondary markets, Fabrizio Viola told the newspaper in an interview published today.
Viola said he doesn’t expect a reversal of trends including the bank’s rising bad loans and writedowns in 2012, according to the newspaper.
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