The European Central Bank (ECB) has turned down an Italian request for more time to complete a rescue plan for the troubled bank Monte dei Paschi di Siena (MPS), according to dpa. The bank was informed of the ECB's decision on Tuesday, the bank said in a statement. MPS was due to complete a 5-billion-euro (5.3-billion-dollar) recapitalization by the end of the year, but its management had asked for an extension until January 20, citing difficulties created by Italy's political crisis. Should the recapitalization be delayed, this could have a further negative effect on the bank's condition and its prospects, the ECB said, according to the MPS statement. The ECB refusal is likely to put pressure on the Italian government to ready some form of state support for MPS to prevent it from going under.
