Rescue fund for the banks in Italy – December 22nd 2016 11:00 (GMT+1)

Golden Decline Graph on digital background

The Italian parliament last night approved the establishment of a fund to rescue banks at a huge financial volume of 20 billion Euros.
The establishment of the fund will allow liquidity to the banking system and actually saves them from collapse.

This step was urgent in light of the fact that the third largest bank in Italy, the Banca Monte Dei Paschi is close to a situation of illiquidity bring closure.
It is estimated that the bank has sufficient liquid resources for just 11 months.

The Bank is required by the European regulation to raise 5 billion Euros by the end of the year, and given the situation it seems that he could not make it by free market funding and therefore will be forced to accept the Italian taxpayer money, or at least guarantees that will enable it to raise money at a later stage in markets.


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