ECB tells Monte dei Paschi to issue T2 by end of the year

Monte's CET1 ratio fell to minus 0.1% under the adverse scenario| Arcansél/Adobe Stock

The European Central Bank has requested that Banca Monte dei Paschi di Siena raise at least €250m of tier two capital before the end of this year, as part of the conditions of its sale of non-performing loans to Amco. Analysts say the bank might have to pay as much as a 9% coupon on the bond.