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Monte dei Paschi, Italy's third-biggest lender, has said it will
press ahead with a plan to raise 5 billion euros ($5.3 billion)
on the market by year-end after the ECB's refusal, which adds
pressure on the Italian government to provide capital.
"There is a certain general feeling that it would not be good to
delay things for too long," Nowotny told a news conference in
Vienna.
Italy prefers a market solution to save the bank, but should it
fail, a state rescue would require a forced conversion of the
bank's bonds into shares, Treasury sources in Rome said on
Monday.
Nowotny said that if the bank's management did not succeed in
putting together a capital increase in time, one would have to
look at the legal options.
Asked if that meant a wind-down of the bank, he said any
solution would have to be chosen carefully because the bank's
size meant it was systemically relevant.
"I would proceed with a certain caution ...and I think talks are
going in that direction," Nowotny told reporters, without
elaborating.
(Reporting by Francois Murphy; editing by John Stonestreet)
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