Plans by Monte dei Paschi di Siena
to boost its capital by three billion euros "is not enough" to
solve the bank's problems, Mario Draghi, president of the
European Central Bank (ECB), said in a letter published by
Bloomberg on Monday.
Instead, MPS "should give a definitive solution to its
structural problems," Draghi wrote.
MPS, the world's oldest operating bank, began a rights
issue on Monday to raise the three billion euros.
Italian stock market regulator Consob has said it will be
watching closely.
MPS must "provide a permanent solution to its structural
problems, namely non-performing exposures, weak capital
situation and earnings under-performance," said Draghi's letter,
sent on May 12, according to Bloomberg.
"The rights issue alone will not be sufficient to address
these structural problems," Draghi added.
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