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Italian cabinet meets to discuss rescue plan for Monte dei Paschi

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Reuters ROME
Last Updated : Dec 23 2016 | 4:28 AM IST

ROME (Reuters) - The Italian cabinet met late on Thursday to discuss details of a widely anticipated government-led rescue of Monte dei Paschi di Siena after the bank failed to raise enough money from private investors to stay afloat.

Parliament on Wednesday authorised the government to borrow up to an extra 20 billion euros ($20.9 billion) to prop up failing banks, starting with the Tuscan lender that for years has been at the forefront of Italy's banking woes.

Monte dei Paschi said on Thursday it had raised less than half of the 5 billion euros of fresh capital that it needs by the end of the year to avoid being wound down by European authorities.

(Reporting by Giuseppe Fonte, Writing by Crispian Balmer, editing by Valentina Za)

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First Published: Dec 23 2016 | 4:16 AM IST

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