October 4, 2017 / 9:34 PM / 2 months ago

Carige warns of resolution risk if capital plan fails

MILAN, Oct 4 (Reuters) - Troubled Italian lender Banca Carige warned on Wednesday it could be wound down by European supervisors if its capital strengthening plan fails.

In a document detailing a debt swap offer that is part of its planned capital-boosting measures, the Genoa-based lender said there was no certainty that such measures would be completed successfully and that the lender could restore its financial health.

Should the plan fail, leaving the bank unable to meet capital requirements, European regulators could adopt resolution measures in line with new rules for dealing with bank crises, Carige said.

The bank has approved a new share issue for up to 560 million euros ($660 million) which it must complete by the end of the year. It has also launched a debt swap offer and asset sale programme which it hopes will raise around 400 million euros.

Carige is the last large Italian bank still in trouble after the government this year rescued bigger rival Monte dei Paschi di Siena and liquidated two failing regional banks. (Reporting by Silvia Aloisi)

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