MILAN Dec 15 Italy's government stands ready to
approve on Dec. 22 a package of measures worth 95 billion euros
($99.8 billion) to support the country's ailing banks, including
Monte dei Paschi di Siena, la Repubblica reported on
* The state plans to make 15 billion euros available to
backstop share issues at Monte dei Paschi and other troubled
lenders such as Popolare di Vicenza, Veneto Banca, Banca Carige
. The decree will not mention specific banks.
* The Treasury was not immediately available for a comment.
* Italy would like to include in the decree measures to
cushion losses for investors whose bonds will be converted into
shares if the state steps in to prop up the banks.
* The Treasury is still in talks with the European
Commission over the possibility of sparing retail bondholders
from any losses. A Treasury source is quoted as saying "the road
is narrow and uphill".
* The decree will also include 80 billion euros in
guarantees that the state could provide to support bank
liquidity. It would guarantee bonds that lenders could use as
collateral against European Central Bank loans or as assets to
($1 = 0.9524 euros)
(Reporting by Valentina Za and Paola Arosio; Editing by Mark