Italy's Banca Monte dei Paschi di Siena, the world's oldest bank, said today it will reduce its workforce by 4,600 people by 2015, as the struggling institution accepted a bailout loan.
BMPS said it will borrow €1.5 billion from the government in order to pay off debt and shore up its capital.
It also said in its strategic plan for 2012-2015 that it would reduce posts and sell assets.
The Tuscan bank said it would carry out the "necessary procedures" to obtain a bailout loan "estimated at around €1.5 billion" by the end of the year.
The government had offered the struggling bank up to €2 billion in aid in what it described yesterday as "urgent measures to raise BMPS's capital funds" as Italy struggles to stave off debt crisis contagion.
BMPS will issue bonds reserved for the state for a total of €3.4 billion to raise the €1.5 billion offered in this bailout, and pay off a government loan taken in 2009 as the financial crisis bit.
The bank has pledged to pay back €3 billion by 2015. It also said it plans to close 400 branches.
The bank, which posted a €4.69 billion loss in 2011, has forecast a €630m net profit in 2015.
