For the third time, the Italian government attemts to rescue Monte dei Paschi, the world's oldest bank. Rome packed a 20 billion Euro rescue package. But more will be needed soon.
Italy's debt-ridden lender Monte dei Paschi di Siena has reported a net profit, signaling it's seeing better times after being rescued from the brink of collapse. A debt swap helped the bank return to the black.
Italy's banks struggle with bad loans and the state itself is saddled with massive debt — but the voters don't seem to care, and the finance minister is demonstratively relaxed about it all.
Monte dei Paschi, the world’s oldest bank, will try to save itself by raising funds through the private sector. If this doesn’t work the government may yet step in to save one of Italy's third-largest bank.
The head of Germany's central bank, Jens Weidmann, has said the planned state-funded rescue of Italian lender Monte dei Paschi needs to be analyzed very carefully. He fears the scheme may not comply with new EU rules.
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