The board of directors of Mps asks for an extension to the Ecb. Ready for public intervention, the title fly – The Republic

MILAN - The perspective of a public intervention on the Monte dei Paschi shoots up the title in the Bag whilst you move away from the way “the market” to the recapitalisation by 5 billion the institute of tuscany. Today, the board of directors headed by Marco Morelli, has made the point on the plan, underwritten by Jp Morgan, Mediobanca, who has now cashed in the conversion of 1 billion bond subordinate – in line with expectations – but it conflicts with the outcome of the referendum and the crisis of the government. Items that are referred to as “the changed context” in the note with which the board of directors has announced to have asked the Ecb for an extension until 20 January next year to conclude the capital increase of 5 billion euros. The earthquake in the Italian political would have alienated international investors, in particular from Qatar, ready to make the coarse part in the recapitalisation, as without them, you can go to ask for all the money in the market.

that’s why, as he renews the Republic on newsstands, tightens the time for a safety net alternative: in the space of a few days, with the new government established, the network may enter a decree-law of urgent need. The technical ways for public intervention are on the table: the Treasury could repurchase the bonds are subordinated, in the hands of the market, or switch to a recapitalisation measure provided for by the directive Brrd in the event of systemic risk. This would involve shareholders and bondholders exposed, withdrawing from their investments, but with the goal of saving at least in the retail and reimbursement ad hoc. A configuration that also in Brussels could be digested, in consideration of the economic time-difficult institutional.

The market in the meantime, back to buy the title, which is struggling to price in the start and then closes in a rise of 10.7%. According to press rumors, the mission of Morelli at the Supervision, the Ecb would have also led to the bearing of time longer to close the operation, may reach a maximum until the end of January, a month after the initial directions, concocting all over the rescue plan. “There is no request and there are no discussions with the Italian authorities on a possible loan to the Esm, the bailout fund of the european, explains her spokesperson regarding some press rumors that speculate the requests of 15 billion euros to the rescue of Mps and other credit institutions.

Topics:

Mps

Italian banks

ecb

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