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Monte Paschi shares rise on optimism over bad loans

Published 08/09/2015, 09:01
Updated 08/09/2015, 09:08
© Reuters. People stand at the entrance of Monte dei Paschi di Siena bank's headquarters in downtown Siena
BMPS
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SX7P
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MILAN (Reuters) - Shares in Monte dei Paschi di Siena (MI:BMPS) rose Tuesday, helped by reports it is selling another batch of bad loans and that the Rome government is making progress on the possible creation of a state-guaranteed vehicle to help lenders offload soured debts.

A source with knowledge of the matter said on Monday Monte Paschi is looking to sell a portfolio of non-performing corporate loans worth 1.8 billion euros ($2 billion) by early next year to free up capital.

© Reuters. People stand at the entrance of Monte dei Paschi di Siena bank's headquarters in downtown Siena

By 0745 GMT Monte Paschi shares were up 3.5 percent at 1.878 euros, outperforming a 2.1 percent gain in the European banks index (SX7P).

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