MILAN, Aug 2 (Reuters) – The European Commission on Tuesday approved revised restructuring targets for Italian bank Monte dei Paschi di Siena (MPS) and a new deadline for the government to sell its controlling stake.
Italy owns 64% of MPS after a 2017 bailout that cost taxpayers €5.4bn. Roma is preparing to pump more money into the Tuscan bank to cover part of a 2.5 billion euro ($2.56 billion) capital increase based on the size of its stake.
The European Commission has deemed Italy’s request for more time to reprivatize the bank acceptable, after efforts to meet the initial deadline of the end of 2021 failed last year due to the failure of talks to sell MPS to competitor UniCredit. .
“The revised set of commitments adequately offsets the revised deadline,” the Commission said.
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(Reporting by Valentina Za and Giuseppe Fonte; editing by Federico Maccioni and Jane Merriman; translation by Flora Gómez)