MILAN, April 3 Italy's Veneto Banca posted on
Monday a 1.5 billion euro ($1.6 billion) loss for 2016 and said
it had lost deposits in March hit by uncertainty over a state
bailout it has requested together with fellow regional bank
Popolare di Vicenza.
To prop up its liquidity, Veneto Banca said it would ask the
state to guarantee a new bond issue for up to 1.4 billion euros,
after tapping the liquidity support scheme for 3.5 billion euros
Veneto Banca said it had written down doubtful loans for 1.3
billion euros last year following a recently concluded on-site
audit by European Central Bank supervisors which forced it to
class more loans as bad and raise coverage levels.
It warned it could book more loan loss provisions this year
as it applied the ECB's guidelines on problematic loans.
($1 = 0.9379 euros)
(Reporting by Valentina Za)