MILAN: Banca Monte dei Paschi di Siena is working on a five billion euro ($5.5 billion) capital increase as part of plans to fix its balance sheet, a source said on Tuesday.
Italy's No 3 lender is seeking to pull together a banking consortium to guarantee the cash call by Friday, the source with knowledge of the matter said.
The bank is waiting for the European Central Bank to give its blessing to the proposal for a capital increase and other measures designed to boost its capital base, the source added.
Monte dei Paschi declined to comment.
The troubled lender, which has one of the heaviest bad loan burdens in Italy, is widely expected to be found short of capital under an adverse scenario when results of the latest Europe-wide banking check-up are released on Friday night.
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