Italy Weighs Selling 15% of Lender Monte Paschi, Corriere Says

Italy is considering an initial sale of a 15% stake in Banca Monte dei Paschi di Siena SpA, daily Corriere della Sera reported Wednesday, as the government led by Prime Minister Giorgia Meloni looks to fund some of its campaign promises.

(Bloomberg) — Italy is considering an initial sale of a 15% stake in Banca Monte dei Paschi di Siena SpA, daily Corriere della Sera reported Wednesday, as the government led by Prime Minister Giorgia Meloni looks to fund some of its campaign promises.

The Finance Ministry, which owns 64% of the lender, could opt to sell a stake in several phases or through an accelerated book-building process, according to Corriere.

Meloni’s government has been evaluating the disposal of a variety of assets to bankroll new spending without adding to the country’s mammoth debt load. But a sale of a stake in the troubled lender could set off alarm bells with European Union regulators and cause ripples in financial markets.

Rome has been mulling stepping up the planned sale of a stake to boost public finances as growth slows, Foreign Minister Antonio Tajani told Bloomberg earlier this month.

Read More: Why Italy Is Arguing Over World’s Oldest Bank, Again: QuickTake

Italy nationalized Monte dei Paschi in 2017 after years of turnaround efforts. The government injected €1.6 billion ($1.7 billion) in fresh money in November amid a capital increase — the latest bid to reshape the finances of a bank that’s burned through about €18 billion in investor and taxpayer cash since 2008.

The lender, which traces its roots to the 15th century, is now just Italy’s fifth-largest.

–With assistance from Sonia Sirletti.

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