Italy ‘No’ vote will make it harder for banks to raise money – economy min

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Italy's Finance Minister Pier Carlo Padoan attends a news conference at the Chigi Palace in Rome November 28, 2016. REUTERS/Tony Gentile

ROME (Reuters) – If the government loses a Dec. 4 referendum on constitutional reform it will be harder for Italy’s struggling banks to recapitalise, Economy Minister Pier Carlo Padoan said on Thursday.

Padoan told state television RAI that Italy’s banking system was solid, but said there were eight banks that were in a delicate position. One of those lenders, Monte dei Paschi di Siena , is looking to raise 5 billion euros ($5.3 billion) by year-end to plug a capital shortfall.

“If ‘No’ wins it will be more difficult to raise capital,” Padoan said.

(Reporting by Crispian Balmer)