ROME, June 16 The Italian government has
intervened to prevent struggling lender Veneto Banca from having
to repay subordinated bonds due to mature next week, a
government source said on Friday.
Prime Minister Paolo Gentiloni's cabinet approved an
emergency decree to suspend the payment, which is due on June
21, the source said, after a cabinet meeting called to address
The move comes as Italy races against the clock to win EU
approval for a bail out of Veneto Banca and rival regional bank
Banca Popolare di Vicenza, which together need 6.4 billion euros
($7 billion) in new capital while they try to offload bad debts.
(Reporting by Giuseppe Fonte,; Writing by Gavin Jones; Editing
by Isla Binnie)