Monte Paschi chief says EU deadline on cap hike unlikely to be binding

Published September 20, 2013

| Reuters

BAGNAIA, Florence (Reuters) - The head of Italy's Monte Paschi said on Friday the European Commission was likely to indicate a 12 month limit for the bank to complete a 2.5 billion euro ($3. billion) capital increase but that it was unlikely to be a binding deadline.

"The European Commission determines the maximum feasibility limits, the effective timing is decided by the markets," Monte Paschi Chief Executive Fabrizio Viola told reporters.

"I think the Commission will indicate a limit of 12 months but I don't think it will be binding," he said.

(Reporting by Silvia Ognibene; editing by Francesca Landini)

The head of Italy's Monte Paschi said on Friday the European Commission was likely to indicate a 12 month limit for the bank to complete a 2.5 billion euro ($3. billion) capital increase but that it was unlikely to be a binding deadline.

"The European Commission determines the maximum feasibility limits, the effective timing is decided by the markets," Monte Paschi Chief Executive Fabrizio Viola told reporters.

"I think the Commission will indicate a limit of 12 months but I don't think it will be binding," he said.

(Reporting by Silvia Ognibene; editing by Francesca Landini)

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