MILAN Dec 13 Troubled Italian lender Monte dei
Paschi di Siena said it had received an official
communication from the European Central Bank on Tuesday
rejecting its request for more time to raise capital.
The ECB said a delay could cause a further deterioration in
the bank's liquidity position and capital ratios, Monte dei
This could, in turn, pose risks for the survival of the
bank, the ECB said in its draft decision, according to Monte dei
Paschi, Italy's third-largest bank.
"In addition, the ECB thinks that delaying the capital
raising to January would not guarantee a more benign market
situation," Monte dei Paschi said in a statement.
A source told Reuters on Friday that the ECB had rejected a
request from Monte dei Paschi for a three-week extension until
Jan. 20 to allow it to try to wrap up a privately funded 5
billion euro rescue plan.
(Reporting by Francesca Landini; Editing by Kevin Liffey)