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