The recapitalisation of Mps will be more expensive than expected for the Treasury, but the resources put at the disposal of the Italian banking system are sufficient. The perimeter of the bottom to save-savings from the 20 billion set up by the Government – highlighted sources from the ministry of the Economy – “has been drawn widely enough to meet all the needs of intervention that may emerge from the situations currently under observation on the part of the institutions”. The clarification is a response to the new requirements of the Ecb for the capital increase of Mps – 8.8 billion, versus 5 billion initially planned, as anticipated yesterday by the Sole 24Ore.com – having regard to the methods to calculate the requirement in the case of recourse to the market, and in the case of the intervention of the State are different.
the entrance to The Treasury in the share capital of Rocca Salimbeni, and the account to be submitted to the holders of the bond deal, however, only the last boxes of a more complex path, which is divided into several steps, all subject to review and the go-ahead from the european commission and the Ecb.
Mps back public, what changes for savers
The first stages of this journey, look at the liquidity, that is the most urgent problem as stressed by the Ecb itself when denied the opportunity to bring to the finish line, the increase in private capital after the 31st of December. To support the bank in the period leading to the recapitalisation of precaution, and that at this point will inevitably be longer than the timetable imposed on the operation of private Treasure available to the public guarantee on new issues, a mechanism authorized in July by the Ecb for the allocation of up to $ 150 billion and is now made available from the decree. To start really, as provided for in article 7 of the decree, the bank must submit the request for guarantees, indicating the need for liquidity and the operations for which he wants the umbrella for the public. Within two months, then the bank must submit a restructuring plan to certify his ability to walk long-term with your legs: will the european commission decide if this plan has cards and is not in conflict with the Eu rules prohibiting State aid.
the Ecb, the treatment of the Greek to the rescue of Monte Paschi
Also the recapitalisation of precaution, that is, the heart of the mechanism, called to bring the Mountain to safety after the deconsolidation of the amount of impaired loans, is being submitted to the european, and in particular of the Ecb than that of the bank of Italy. The recapitalisation follows the presentation of the “program of strengthening the balance sheet”, and the supervisory authority should assess whether the quantification of the capital requirements is appropriate and whether the measures to achieve the result are appropriate and achievable. The start of the program would trigger the constraints on management imposed by paragraph 47 of the communication the 2013 Eu on the banking system, which include, in particular, the prior authorisation of the Ecb of any of the operations of the capital management, in addition to the blocking of dividends and purchases of investments in subsidiaries.
At the end of the recapitalization, the Treasury should have a share of about 70% of the bank siena. Such participation would be the result of the financial commitment expected from the public shareholder, which most parties indicate that approximately 6.5 billion euro, calculating that the 8.8 billion increase in the capitalization present in the Stock exchange (442 million euros before the suspension, the Treasury would have, precisely, a little over 70% on the total value of the Monte Paschi of 9.2 billion euros.
The capital needs indicated by the Ecb, once satisfied with the recapitalisation measure has the purpose of allowing Banca Monte dei Paschi di Siena to be in a condition to overcome with success to the end of 2018 in the event of an adverse scenario as hypothesized by the stress tests conducted by the Agency, the European Banking (Eba) in 2016.
The Mps stock is suspended on the Stock exchange sine die pending the process of recapitalisation is complete.
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