Monte Paschi approves increasing size of capital increase to 5 bln euros

MILAN, April 18 Fri Apr 18, 2014 8:53am EDT

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MILAN, April 18 (Reuters) - The board of Italy's Monte dei Paschi di Siena approved increasing the size of a planned capital increase to 5 billion euros ($6.9 billion) from 3 billion euros to absorb any potential loss stemming from a European health check of lenders.

In a statement on Friday, the bank said the higher capital increase may also allow it to repay early 4.1 billion euros of state aid it received last year.

An extraordinary shareholder meeting was called for May 20 to vote on the revised capital increase proposal. ($1 = 0.7228 Euros) (Reporting by Silvia Aloisi, editing by Isla Binnie)