Monte dei Paschi says could run out of liquidity after 4 months

Bank says it will likely burn through liquidity at a faster rate than previously forecast

The main entrance of the Monte dei Paschi bank headquarters  in Siena. Photograph: Max Rossi/Reuters

The main entrance of the Monte dei Paschi bank headquarters in Siena. Photograph: Max Rossi/Reuters

 

Ailing Italian bank Monte dei Paschi di Siena expects to burn through about €11 billion of liquidity more quickly than previously forecast, an updated document on the bank’s website showed on Wednesday.

Monte dei Paschi said it now expected its net liquidity position, currently standing at €10.6 billion, to turn negative after four months. On Sunday the bank had forecast that a current net liquidity position, which was of €11 billion, would turn negative after 11 months under a number of assumptions.

It said on Wednesday the position would be negative for €15 million on the 5th month and could worsen further to minus €740 million by the 12th month. This compares with the minus €100 million level it forecast on Sunday for the 12th month. - (Reuters)