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Financials

Italy state lender has no plans to raise stake in bank rescue fund - minister

ROME, May 4 (Reuters) - Italy’s state lender Cassa Depositi e Prestiti (CDP) does not plan to increase its stake in a rescue fund for the country’s struggling banks, Economy Minister Pier Carlo Padoan said on Wednesday.

Italy’s main financial institutions agreed earlier this month to set up a 4.25 billion euro fund to provide a backstop to risky cash calls and buy bad loans off banks.

CDP, which is controlled by the Treasury, has not officially said how much it would contribute to the fund. A source familiar with the matter said it would plough in 500 million euros.

Padoan told a Senate hearing that CDP would not increase its contribution, partly to stay on the safe side of European Union rules on state aid. ($1 = 0.8719 euros) (Reporting by Giuseppe Fonte, writing by Isla Binnie, editing by Valentina Za)

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