Monte dei Paschi shareholders approve bad loan clean-up

Investing.com | Oct 4, 2020 at 2:00 AM
  • Shareholders in Monte dei Paschi di Siena (MI:BMPS) approved on Sunday a long-awaited bad loan clean-up plan aimed at easing the sale of the state-owned bank to a healthier rival.
  • Under the ‘Hydra’ scheme Monte dei Paschi will transfer 8.1 billion euros in impaired loans to state-owned bad loan manager AMCO, together with other assets and liabilities including 1.1 billion euros in capital.
  • The ECB has demanded the bank replenishes its capital buffers, a condition the Treasury had hoped to fulfil by finding a buyer by the end of the year.