trending Market Intelligence /marketintelligence/en/news-insights/trending/4pwHrR4vGFqNTiK9cpFHUw2 content esgSubNav
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

Report: Monte dei Paschi submits NPL sale, cash call plan to ECB

Banking Essentials Newsletter December Edition Part 2

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

Report: Monte dei Paschi submits NPL sale, cash call plan to ECB

Banca Montedei Paschi di Siena SpA has submitted a plan to the to sell its entire portfolioof dud loans at a loss of €1 billion to €2.7 billion, Reuters reported July 21,citing "a source familiar with the matter."

The €10 billion bad loan portfolio is counted in Monte deiPaschi's books at 37% of face value, Reuters noted, with the source saying theloans could be sold for between 27% and 33% of their nominal value. Threesources told the newswire that the ECB would review Monte dei Paschi's proposalJuly 21.

The single source added that the plan also includes a cashcall, underwritten either by a consortium of banks or by the Italian state, subjectto approval from relevant authorities, the report added.

The ECB in the week of July 4 told Monte dei Paschi toreduce its stock ofnonperforming loans by 40% through 2018. The lender is expected to fare poorly inEuropean Banking Authority stress tests to be revealed July 29, Reuters noted.