ROME/MILAN (Reuters) - Italian lender Monte dei Paschi di Siena has discussed with the Treasury the possibility of delaying the repayment of state aid or issuing shares to the government among options to plug a capital shortfall uncovered by EU-wide tests of lenders, a source close to the matter said.
A Treasury source said the bank's top executives met officials on Monday to discuss how to plug the capital shortfall, declining to elaborate on the content of the talks.
Asked whether postponing the reimbursement of the state loans or converting them into shares to be issued to the treasury were being considered, the source close to the matter said: "All options are under consideration. The bank is working on it (the shortfall). The system is solid."
(Reporting by Giselda Vagnoni and Elvira Pollina, writing by Silvia Aloisi)
