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Monte Paschi unveils new turnaround plan

Alessia Pierdomenico | Bloomberg | Getty Images

Banca Monte dei Paschi di Siena unveiled on Monday a tough turnaround plan aimed at regaining profitability and winning investors' favour to fend off nationalization.

In a statement, the bank said it aimed to fully repay state loans taken to plug a capital hole by 2017 and make by then a net profit of 900 million euros ($1.22 billion).

(Read more: EU demands tougher Monte Paschi restructuring plan)

The European Commission had asked Monte Paschi's top management to draft a new restructuring plan as a condition to grant its green light to a multi-billion euro state bailout.

The Commission has also requested that Monte dei Paschi carries out a 2.5 billion euro capital hike, which the bank says it will execute in 2014. ($1 = 0.7368 euros)

(Read more: Italy's central bank sees even steeper decline for economy)

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