Banca Monte dei Paschi di Siena S.p.A. (“BMPS” or the “Banca”), following rumors appeared on the press today, states that has received from the European Central Bank a letter in which it is notified the intention to require the Bank to meet certain requirements related, in particular, to non-performing loans. These requirements are contained in a "draft" letter, on which the Bank has the opportunity to present its arguments by 8 July 2016.
More in details, the “draft” includes a chart - provided below - according to which the Bank, in the next three years, should reduce its non-performing loans and achieve certain targets.
| ||Actual 2015||2016 ||2017||2018 |
|NPLs – Gross Exposure (EUR/bn)||46.9||Max. 43.4||Max. 38.9 ||Max. 32.6 |
|NPLs – Net Exposure (EUR/bn)||24.2 ||Max. 21.8 ||Max. 18.4 ||Max. 14.6|
These targets are in line with the objectives of a specific plan, recently approved by the Bank and simultaneously subjected to the ECB assessments, focused on increasing the amount of non-performing loan disposals already included in the business plan 2016 / 2018.
According to this “draft” letter, BMPS is also required to present, by October 3, 2016, a plan of the management actions to be implemented by the Bank to reduce the ratio between total non-performing loans and total loans (NPL ratio) to 20% in 2018.
The Bank has immediately initiated discussions with the European Central Bank in order to understand all the indications included in this “draft” letter, and to present its reasoning before the final decision, expected by the end of July 2016.