Monte Paschi Wins EU Backing on Revamp, Paving Way to Rescue
- Italian bank set to win preliminary recapitalization in weeks
- Bank must restructure in return for EU approval for aid
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European Union and Italian officials agreed on a plan to restructure Banca Monte dei Paschi di Siena SpA, allowing Italy to inject capital to rescue the world’s oldest bank.
Competition Commissioner Margrethe Vestager and Italian Finance Minister Pier Carlo Padoan reached “an agreement in principle” on a deal that paves the way for a precautionary recapitalization of the lender, according to a statement on Thursday. The deal, following “intensive” talks between Italy, the EU and the ECB, still requires formal approval.