Monte dei Paschi CEO told board banks needs 1.5-2.0 billion euros in capital: source

FILE PHOTO: A logo of Monte dei Paschi di Siena bank is seen on the ground in downtown Siena, Italy, November 5, 2014. REUTERS/Giampiero Sposito/File Photo

ROME (Reuters) – Monte dei Paschi CEO Guido Bastianini told directors at a board meeting on Monday the bank needs 1.5-2.0 billion euros ($1.7-$2.3 billion) in cash to avoid breaching capital requirements early next year, a source with knowledge of the matter said.

Bastianini mentioned both a rights issue and an Additional Tier 1 (AT1) issue as options to fill the gap, adding however the AT1 bond was problematic due to its high cost.

Monte dei Paschi declined to comment.

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