BANCA MONTE DEI PASCHI DI SIENA SPA Top executives at Italy's third biggest bank, which faces a capital shortfall of 2.1 billion euros, met with the treasury on Monday after Monte Paschi emerged as the bank with the largest hole to plug among the 130 lenders scrutinised by European regulators.
"We will not oppose a request from the bank to delay state aid repayment, there is a contract that already sets the conditions for that to happen," Alessandro Rivera, director general for the financial sector at the treasury told Reuters on Tuesday.
On the contrary, the government does not look favourably at the possibility of converting the loans granted in a state bailout into shares, Rivera said.
"It's up to the bank to decide what they want to do," he said on the sidelines of an event.
(Reporting by Francesca Landini, editing by Valentina Za)
