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ROME, July 24 (Reuters) - The Italian government will discuss a proposal to delay a reform of small banks at a cabinet meeting on Tuesday, according to a draft document seen by Reuters.
The document says the reform, which was planned by the former centre-left executive and backed by the European Central Bank, will be delayed until October 31 for mutual banks.
Cooperative banks (BCC) would also get two additional months to meet a deadline to agree on merging with other banks. The deadline would be extended to 150 days from 90 days, according to the draft document. (Reporting by Angelo Amante; writing by Francesco Guarascio; editing by Philip Pullella)