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2017.02.2307:03:00UTC+00Brussels, ECB officials divided over Monte dei Paschi proposal

Officials from Brussels and the ECB have differing stance over the capital proposals of Monte dei Paschi, especially their tasks and the advantages of revitalizing the bank.

Italy's plan to inject taxpayers' money into the distressed firm has been delayed for around two months due to the said deadlock, leaving questions about the proposal including the allowed extent of state help and the range of restructuring needed.

Senior bankers and eurozone officials cautioned resolving the matter, which has hugely impacted the Italian financial sector and challenged the post-crisis rules enforced by the European Union, could last for months.

Brussels claims it is watching the European Central Bank's supervisors to strike a deal with the company before it can finalize restructuring conditions.

But the ECB's supervisory panel is awaiting the bloc to agree on a plan to overhaul the bank and authorize a state-backed financial assistance.



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