The economy ministry of Italy said on Sunday that Banca Monte dei Paschi di Siena, under revisions in the bailout plan, would be seeking EUR2.5 billion or USD3.3 billion in capital from its investors. The increase was more than double the amount as indicated in the original plan, which was EUR1 billion.
The statement issued by the Treasury happened following a meeting between EU Competition Commissioner Joaquin Almunia and Economy Minister Fabrizio Saccomanni on Saturday.
The revised bailout plan was the latest step to the recovery of the Italian bank. The bank is still struggling from the effects of a derivatives scandal. The scandal was exposed after its acquisition of its rival, Antonveneta, back in 2008 for an expensive deal.
According to data from Reuters, the increase in extra capital would match the bank's current market capital at EUR2.5 billion on Friday. The Italian government had already pledged EUR4.1 billion in state loans. The recapitalization would be happening next year.
Almunia stressed after the meeting that if Monte Paschi cannot find private investors to succeed in its bailout plan, the Italian bank would be up for nationalization.
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