Draghi says MPS capital boost alone 'not enough' - update 2

ECB warns institution to solve 'structural problems'

(ANSA) - Rome, May 25 - 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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