Italy government undersecretary says Monte Paschi won't need state aid

MILAN (Reuters) - Ailing Italian bank Monte dei Paschi di Siena will not need state support, Claudio De Vincenti, an undersecretary at the prime minister's office, said on Thursday.

The bank, which emerged as the weakest lender in a European health check of the sector this summer, is seeking to raise 5 billion euros ($5.3 billion) by year-end to plug a capital shortfall.

However, the plan has been overshadowed by a Dec. 4 referendum that could unseat the government of Prime Minister Matteo Renzi, raising concerns that the bank's capital raise may fall short due to market turbulence.

"We are very, very confident that Monte dei Paschi's transaction will go very well," De Vincenti told reporters.

"There'll be no need for state intervention, Monte dei Paschi is perfectly capable of raising capital on the market."

(Reporting by Elisa Anzolin, writing by Silvia Aloisi)

You May Also Be Interested In

• LSEG reports in-line first quarter as Microsoft partnership progresses
• Russian missile damages civilian, railway infrastructure in Ukraine's Cherkasy region, air force says
• Sanofi profit slips on generic competition and currency effects