EC bailout for Monte Paschi

City A.M. Reporter
THE European Commission gave preliminary approval yesterday to a €3.9bn (£3.16bn) state bailout for Banca Monte dei Paschi, ending months of uncertainty for Italy’s third-biggest lender.

The approval is conditional on the bank, which was forced to request state aid to bolster its weak capital base, presenting a restructuring plan within six months.

Monte dei Paschi, the world’s oldest bank, was one of just four European lenders that failed to meet tougher capital requirements set by the European Banking Authority.