Euromoney's latest coverage of Europe’s fourth-largest economy as its banking sector stands on the brink.
Sofferenze loans – literally, 'the suffering' – make up 60% of Italy’s non-performing loan stock. At €200 billion, that’s some 11% of the country’s GDP. Fears about the fate of Europe’s fourth-largest economy as its banking sector stands on the brink have centred around the world’s oldest bank – Monte dei Paschi di Siena. The European Central Bank has had Monte’s feet to the fire to clean up its balance sheet. But, surrounded in Malebolge-like cliffs of bad debt of about €50 billion and having burned through €8 billion of freshly raised capital before, plans to get the bank out of the eighth circle of hell have been fraught with problems. Euromoney has collected its best features from recent months covering the Italian loan problem. Together, they represent a thorough and fascinating look into the Italian banking crisis.