“Since the fall of last year, the Ministry and the Bank have been active in the search for a partner for MPS. It is possible that Mef will receive shares of the Unicredit Group “in exchange for the sale of Montepaschi to the Milanese Bank”, but any such participation in the capital should not change the balance of governance. In any case, the state will share in all the economic benefits in terms of value creation deriving from the process”, explained Minister of Economy Daniele Franco, in a closed stock exchange hearing before the joint financial committees of the Chamber and Senate on the MPS file. He stressed that the new industrial plan for Mps ” It presents targets that do not correspond to the requests of the European Commission, in particular, the specified cost reduction of 51% of revenue from Brussels, while according to the plan, 74% is expected in 2021 and again 61% by 2025″.
Clarification in reply: We will not close with Unicredit at any cost
In the final response to the interventions, regarding possible bundling with Unicredit, the Minister then specified “we will not close with Unicredit at any cost”. As for Montebashi, he said, “We only have one counterpart presented” but “we will propose a final package only if we are convinced that it will be sufficient but if we think it is not, we will not try to close it at all costs.” “I hope it will close and I strongly hope it will happen – as Franco said – and I think there is room for solutions but we will not close at any cost, neither we nor Unicredit,” Franco said.
The risk of an increase in the number of layoffs of 2500 due to the EU quotas
In his speech, the Minister clarified that there are no conditions for submitting a request to the European Union regarding the postponement of appointments. There is no risk of dismantling the bank. In the potential case where dialogue with the committee requires setting a more ambitious target in terms of cost and revenue, iterations could be much higher “compared to the 2,500 volunteers currently recruited”. Franco spoke of the “maximum concern of 21,000 employees with multiple tools.” He added, “It will not be a sale of state property – then he emphasized -. He stressed that Unicredit is an excellent strategic solution for the interest of the country.”
Need a raise above the plan
Franco said the “stress test result underscores the need for extensive structural strengthening” of management systems and “bringing them to average European bank values” that will require “a much higher increase than that envisaged by 2020. Plan-2025” of €2.5 billion. “For the purposes of a possible increase in Banca Mps capital, which becomes necessary within the general structure of the transaction, the resources allocated under Article 66 of Decree-Law 104 of 2020, the so-called August Decree, can be used, for example, up to 1.5 billion. Independent Plan – continued Chief The economy – you will be exposed to significant risks, uncertainties and serious competitive problems.”
So far with Unicredit there is no risk
“At the present time, there are no indications that there is a risk of dismemberment” of Montepaschi through the merger with Unicredit, the minister explained. “Assets excluded, to date, have been identified in non-performing loans of approximately four billion total adjustments,” Franco said, as well as pending litigation and non-court cases, in disputes and risks related to the sale of loans to third parties.
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