On 22 December, the fate of the Italian bank Banca Monte dei Paschi di Siena (BMPS) was reasonably uncertain, after announcing the day before that its voluntary conversion of bonds into shares had allowed it to collect slightly more than €2 billion, when it was supposed to raise €5 billion in private funds before the end of the month.
The capital increase ended on Thursday at midday, but no figures were available as we went to press. In particular, the bank was hoping for €1 billion from the Qatar-based fund, Qia.
On Wednesday, the Italian parliament allowed the government to mobilise to €20 billion to come to the rescue of struggling banks. Basically, this will translate into an increase of the Italian public debt, even though this is already considerably above 130% of GDP. This public action aims to maintain the country's financial stability and protect household savings, Finance Minister Pier Carlo Padoan stated.
On Thursday, the European Commission declined to comment until the Italian government had notified it of its plans for BMPS, the country's third-largest bank, which is groaning under the weight of non-performing loans. (Original version in French by Élodie Lamer)