Italy seeks approval for possible banks rescue funding
Italy's new government is asking parliament to approve up to an additional 20 billion euro (£16.7 billion) in funding to rescue the country's troubled banks, if necessary.
The cabinet approved the measure late on Monday, as Italy's third-largest lender, Monte dei Paschi di Siena, is seeking to raise five billion euro (£4.2 billion) in the markets to stay afloat.
Investors signalled their doubts about the operation, with its share price dropping by 11% before the government's announcement.
Parliament must vote before the new funding can be allocated.
Concern that Monte dei Paschi may need a state bailout before year-end comes amid broad concerns about Italy's banking system, which is weighed down by some 360 billion euro (£302 billion) in bad loans which banks will struggle to repay due to the weak economy.
Most Read
- Tributes paid to west Belfast footballer Molly White after sudden death
- ‘It was love at first sight’: Partner of Co Tyrone carpenter who died in Carlow water tragedy pays emotional tribute
- Sinn Fein hits back at Liz Truss claims party ‘driving a wedge’ between Northern Ireland and Great Britain
- Irish language rappers Kneecap unveil mural of burning PSNI Land Rover in west Belfast
- Met Office issues updated warning with thunderstorms set to hit Northern Ireland sooner
Top Videos
Play
Play
Latest World
- Russian shells slam into eastern Ukraine, killing three
- Death toll in Armenia fireworks depot blast reaches six
- Afghanistan marks one year since Taliban seizure as woes mount
- GAA star accused of beating man so badly he could lose kidney back playing days after court date
- Myanmar court convicts Suu Kyi on more corruption charges
Latest
- Image of the Queen appears on Bogside bonfire as politicians appeal for calm
- Paddy Morris: Tyrone carpenter who died in Carlow river tragedy will live on ‘through all the memories’, funeral told
- Legal first in ‘Billy the Kid’ home-side homicide convictions
- Derry man who strangled his cat to death and shared video recording receives jail term
- Man stabbed to death near London’s Oxford Street