December 3, 2019 / 9:10 AM / 9 days ago

UPDATE 1-Italy's FITD fund to consider inject capital into Popolare di Bari - source

(Adds Popolare di Bari, govt source, background)

ROMA, Dec 3 (Reuters) - The Italian depositor guarantee fund (FITD) will examine this week a plan to recapitalise ailing regional lender Popolare di Bari, which needs up to 1 billion euros ($1.10 billion) in capital, a source close to the matter said on Tuesday.

An extraodinary FITD meeting is scheduled for Thursday the source added, confirming the news first reported by the Italian daily Il Messaggero.

Popolare di Bari was not immediately available for a comment.

It is unclear whether the fund, which is financed by the country’s lenders, will be joined by other investors in the effort to keep Popolare di Bari in business.

A government source told Reuters on Tuesday that the ruling coalition is considering passing a rule to make it easier for state-owned Mediocredito Centrale to take part in Popolare di Bari’s rescue.

The Bank of Italy said on Friday that stress tests it conducted this year among small Italian banks, not directly supervised by the European Central Bank, showed that six lenders would have insufficient capital under an adverse scenario.

In July the FITD backed the latest rescue plan for troubled Banca Carige, agreeing to shoulder the bulk of a proposed 900 million euro cash injection.

$1 = 0.9073 euros Reporting by Stefano Bernabei, editing by Louise Heavens

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