GENOA, Italy (Reuters) – Banca Carige <CRGI.MI> commissioner Pietro Modiano said a possible nationalisation of the ailing Italian bank was not an option on the table even as the idea gained some political traction.
“A nationalisation is not on the table, it is not necessary … it is a less than abstract possibility,” Modiano told a press conference on Wednesday.
The Rome government has stepped in to shore up the country’s 10th largest bank, marking a major about-face for the ruling 5-Star Movement after riding popular anger at banking rescues handled by the previous government under strict European rules that forced losses on small savers.
Rome has pledged up to 1.3 billion euros (£1.1 billion) to guarantee bonds Carige plans to issue soon and buy up to 1 billion euros in shares under a “precautionary recapitalisation” scheme that was used to bail out rival Monte dei Paschi di Siena <BMPS.MI> in 2016.
(Reporting by Valentina Za and Andrea Mandala, editing by Agnieszka Flak)