Italy will not need support from the ESM
So says economic minister Padoan in today's La Repubblica 11 Jan
- Italy will not need support from the European Stability Mechanism
- Monte dei Paschi is healthy and will return to profit
MdP will receive €6.6bln in state aid to help.
The European Stability Mechanism is a European Union agency that provides financial assistance, in the form of loans, to eurozone countries or as new capital to banks in difficulty.
It is a permanent agency, based in Luxembourg, and has replaced the temporary European Financial Stability Facility (EFSF).
The ESM has a maximum lending capacity of €500bn which it borrows in the financial markets, by selling bonds, the same method that governments use for most of their borrowing needs.
Meanwhile EURUSD 1.0565 as EURGBP finds a few dip buyers again around 0.8660 and capping cable gains.
Italy's Padoan - No need for ESM