Article 24P03 ECB refuses to help Italy's crisis-hit Monte dei Paschi bank

ECB refuses to help Italy's crisis-hit Monte dei Paschi bank

by
Jill Treanor and Stephanie Kirchgaessner in Rome
from on (#24P03)

Italian government may have to prop up world's oldest bank as recapitalisation deal falters

Fears that the Italian government will have to prop up Monte dei Paschi di Siena (MPS) are mounting after the European Central Bank refused to give the world's oldest bank more time to find major investors to back a a5bn (4.2bn) cash injection.

Trading in the troubled bank's shares was repeatedly halted on the Italian stock exchange on Friday. The MPS share price closed 10% lower as the bank's board held a meeting that had already been scheduled before the reports that the ECB had rejected its calls for an extension to the deadline to bolster its financial position.

Related: Monte Dei Paschi bailout: what you need to know - the Guardian briefing

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