MILAN, April 19 Italy's Treasury may allow
loss-making Banca Monte dei Paschi di Siena more time
to pay interest on a state bailout, to ensure the sum is paid in
cash rather than in bank shares, Corriere della Sera reported on
Citing sources close to the Treasury, the paper said the
Treasury had told the bank it may extend the July 1 deadline for
paying 360 million euros ($498 million) by a few days.
The Treasury had no immediate comment. Monte dei Paschi
declined to comment.
The 540-year-old lender, which received 4.1 billion euros in
state aid last year, had agreed with banks underwriting its
emergency capital hike that it would pay back the interest in
cash rather than shares, preventing Italy's government taking a
Monte Paschi's board approved a proposal on Friday to raise
the value of a share sale it is planning by 2 billion euros to 5
billion euros, to help cover any gaps a Europe-wide bank check
might find in its finances.
($1 = 0.7228 Euros)
(Reporting by Isla Binnie; Editing by Rosalind Russell)