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ROME, May 25 (Reuters) - Italian Economy Minister Pier Carlo Padoan said on Thursday that a rescue of regional banks Popolare di Vicenza and Veneto Banca would not be carried out under so-called "bail in" rules that impose losses on investors before tapping any public money.
Popolare di Vicenza and Veneto Banca have requested public support to fill a 6.4 billion euro capital shortfall.
But EU authorities demand a 1 billion euro ($1.1 billion)contribution in private capital before approving the state bailout due to new rules on banking crises that aim to shield taxpayers.
Raising private capital could be near impossible for the two lenders, which only last year were rescued from bankruptcy by state-sponsored, privately-funded bank support fund Atlante.
"I rule out the possibility of a 'bail in'," Padoan told reporters when asked about negotiations with EU authorities over the rescue. ($1 = 0.8920 euros) (Reporting by Giuseppe Fonte, writing by Valentina Za,)