MontePaschi CEO says lending held up at end of 2009
By Lisa Jucca
DAVOS, Switzerland (Reuters) - Italy's Banca Monte dei Paschi di Siena, the world's oldest bank, said its lending ticked up at the end of last year as loans made by Italian lenders to retail and corporate customers seemed to stabilize.
The economic crisis that gripped major economies last year as a result of the 2008 credit crisis hit bank lending, but there were signs of improvement at the bank.
"In Italy, lending has held up," Antonio Vigni, Chief Executive Officer of Monte Paschi (BMPS.MI: Quote) told Reuters in an interview on Friday on the sidelines of the World Economic Forum.
"(Monte Paschi) had a marginal improvement in the month of December, up 0.4 pct from a year earlier, mostly thanks to a recovery in consumer lending," he added.
"Corporate lending was slightly weaker but we are now in a recovery phase and we saw a general improvement in November and December."
Vigni said its bank, which had to accept 1.9 billion euros ($2.67 billion) of aid in the form of a special government bond issue, said the bank had cut structural costs by between 5 and 6 percent by the end of 2009, adding it planned to repay the bonds in 2013.
"We will continue with a further cost reduction."
GRADUAL TRANSITION Continued...