Monte Paschi sent restructuring plan to EU on Monday

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MILAN/BRUSSELS (Reuters) – Banca Monte dei Paschi di Siena (BMPS.MI ), Italy’s third-largest lender, has sent a restructuring plan to the European Commission and will release details of the plan after the Commission has approved it, the bank said on Tuesday.

The plan, approved by the bank’s board on June 13 and sent to the Commission on Monday, is a necessary step to win the European Union’s approval for loans from the Italian state.

A spokesman for the European Commission said it would examine whether the plan complies with EU rules, but declined to give any details including on timing. The Commission’s review is expected to take at least two months to complete.

The bank, at the center of a probe into risky derivative trades, was forced to take 4.1 billion euros ($5.47 billion) in state loans under Italy’s previous government of Mario Monti in order to stay afloat.

(Reporting by Stephen Jewkes and Francesco Guarascio- Editing by Greg Mahlich)

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