Troubled bank Monte dei Paschi di
Siena (MPS) said late Wednesday that the Italian government will
own about 4% of the bank after it completes a planned capital
increase.
Almost 450 million new shares will be assigned to the
economy ministry in payment of interest on government help in
2012 for the world's oldest operating bank, MPS said in a
statement.
It said the ministry promised not to sell the shares for
several months after they are issued in July to avoid disturbing
the financial market.
Troubled MPS had received a 4.1-billion-euro bailout
approved under former premier Mario Monti.
Last month, the government agreed to become a shareholder
in MPS from July under a clause in the so-called Monti bonds
that said if it posted a loss, interest payments to government
would be paid in shares.
That clause kicked in when MPS posted a 2014 loss of 5.3
billion euros.
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