The Parliament of Italy approved to invest €20bn (£16.9bn, $20.9bn) to bailout the world oldest and largest bank as it failed to invest in private efforts.
Monte Dei Paschi di Siena (MPS) was the country third largest bank and failed to secure the private investment of the €5bn for new shares – the measure was approved by the parliament and starting to invest in reinforcing the capital by underwriting new shares.
The bank MPS was known to be the first bank that was survived and funded by the Italian government for its survival as it is the world oldest bank also.
Before the end of this year, the bank was hoping that they are able to collect the amount of €5bn but the big investment of €5bn from the Qatar anchor was failed and this is the top down moment for the bank.
The information collected by the different sources and Reuters cautioned that nobody is investing in the world oldest and third largest bank of the world due to the departure of the big investment from the Qatar anchor of €5bn.
The share prices of the Monte bank were also fallen with 80 percent this year – they also launched a debt to convert junior bonds into share but only capable of collecting worth of €1bn from the conversion.
The MPS is standing behind from its deadline that was imposed by the European Central bank due to their low funds and was not survival in the next year – then suddenly the Italian government has stepped forward and increased the demand of the bank and also other banks of the state by increasing 4 percent stake.
The world oldest bank that was found in 1472 and considered to be the world oldest survival bank announced that they only survive for 11 months with the pending fund as they are run out of money in the coming April.
The bank tells that they have crossed they lowest level since 1999 and are failed to raise the funds less than 24 hours before its deadline – the bank is trying to raise the fund of €5bn but only capable of raising the fund of €500m as it also failed a European Union stress test in July.
The prime minister of the country, Paolo Gentiloni added that we have to save the bank as it is the world oldest one and linked with the thousands of the Italian citizen – the fund was approved by the both upper and lower parliament house.
The finance minister also announced the raise of €20bn from the government to bail out this bank – the investment is enough for the bank and exactly continue the balance sheet of the people.