The value of the shares of Monte dei Paschi di Siena (the oldest Bank in the world, founded in 1472) fell to a record low. On Monday, July 4, writes The Financial Times. The sharpest decline occurred after the European Central Bank (ECB) has demanded that Monte dei Paschi to reduce bad loans.
Last year their total volume came in at 46.9 billion euros. The ECB’s demands to lower it to 38.9 billion by the end of 2017, and then to 32.6 billion by the end of 2018.
The Bank intends to present his proposals to reduce credits to the final decision of the ECB, which is expected by the end of July 2016, said a spokesman for Monte dei Paschi. If not reported, the punishment for a financial institutions failure to comply with the requirements of the regulator.
By 4 July the shares of Monte dei Paschi di Siena fell compared with the peak values in March last year by nearly 86 percent to 0.35 euros. On 23 June, after the announcement of a referendum on British exit from EU (so-called Brexit) securities of the Bank fell by 35.5 percent to 0.54 euros per share. Shares of Monte dei Paschi di Siena are traded on the Italian stock exchange (Borsa Italiana, Milan).
