Banca Montepaschi di Siena (MPS)

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Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 12-16-2009 10 Billion Euros to Italian Small and Medium Enterprises Banca Montepaschi di Siena (MPS) Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation Banca Montepaschi di Siena (MPS), "10 Billion Euros to Italian Small and Medium Enterprises" (2009). YPFS Documents (Series 1). 10948. https://elischolar.library.yale.edu/ypfs-documents/10948 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu. 10/29/2019 10 billion Euros to Italian Small and Medium Enterprises - Banca MPS – ENGhttps://www.gruppomps.it/en/media-and-news/press-releases/10-billion-euros-to-italian-small-and-medium-enterprises.html 1/2HOME / MEDIA & NEWS / PRESS RELEASES / 10 BILLION EUROS TO ITALIAN SMALL AND MEDIUM ENTERPRISESFINANCIAL10 BILLION EUROS TO ITALIAN SMALL AND MEDIUMENTERPRISESMemorandum of Understanding signed between Banca Monte dei Paschi di Siena and Italian Ministry for Economy and Finance onconvertible  nancial instruments (so-called Tremonti Bonds)Siena, 16 December 2009 - On 14 December 2009, Italian Minister for the Economy and Finance, Giulio Tremonti, approved thesubscription by the Ministry of  nancial instruments convertible into ordinary shares to be issued by Banca Monte dei Paschi di SienaS.p.A., for an amount of EUR 1.9 billion, pursuant to art. 12 of Legislative Decree no. 185 of 29 November 2008, converted into law no.2 of 28 January 2009.A Memorandum of Understanding setting out the terms for subscription has also been signed pursuant to art. 2, par. 2, of MinisterialDecree of 25 February 2009. The agreement provides for the adoption by the Montepaschi Group of a Code of Ethics indicative, interalia, of the estimated executive remuneration and a speci c set commitments, including, amongst others, the following:Additional 10 billion Euros a year for SMEs Effective from 1 January 2010 and up to 31 December 2012, the Montepaschi Group willmake 10 billion Euros available as additional lending to Italian SMEs, on top of the EUR 70.2 billion loans that have already beendisbursed on average in the last two years (from 30 June 2007up to 30 June 2009). Thus there will be an increase at a CompoundAnnual Growth Rate of 4.5%. This will of course be conditional to the existence of a corresponding request and to the maintenance ofan adequate credit quality, complying at the same time with the principle of sound and prudent banking management.EUR 28. 5 million the bene ciaries of the Central Guarantee Fund More favourable conditions will be applied to the bene ciaries of the  nancial assistance from the Central Guarantee Fund for SMEs,to which the Group’s contribute will be of EUR 28.5 million, to be paid in three equal annual instalments.Suspension of mortgage payments Payment of mortgages for  rst home buyers will be suspended for 12 months free of charge - if so requested and justi ed by theborrowers identi ed under the Framework Agreement signed between the Italian Banking Association (ABI) and the Italian Ministryfor the Economy and Finance on 25 March 2009.In addition, an adequate level of liquidity will be ensured to creditors of the Public Administration.The Memorandum of Understanding shall be effective until the  nancial instruments issued are in place or until Banca Monte deiPaschi di Siena S.p.A. exercises the right of redemption or repayment of all bonds subscribed by the Ministry.Following the issuance of the convertible  nancial instruments known as Tremonti Bonds, which are classi ed as primary capital, theMPS Group capital ratios -based on consolidated balance sheet data as at 30 September 2009- are as follows: Tier 1 Ratio: 7.6%;Total Capital Ratio: 11.9%. 10/29/2019 10 billion Euros to Italian Small and Medium Enterprises - Banca MPS – ENGhttps://www.gruppomps.it/en/media-and-news/press-releases/10-billion-euros-to-italian-small-and-medium-enterprises.html 2/2FINANCIAL PRESS RELEASE-10 BILLION EUROS TO ITALIAN SMALL AND MEDIUM ENTERPRISESCONTACTSRelazioni con i mediaMedia RelationsPh: +39 0577 296634 Email: u cio.stampa@mps.itInvestor RelationsPh: +39 0577 299350Email: investor.relations@mps.it

10 Billion Euros to Italian Small and Medium Enterprises

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10 Billion Euros to Italian Small and Medium Enterprises

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