World News

Italy depositor guarantee fund to decide on Dec. 30 on Pop Bari rescue: source

ROME (Reuters) – A depositor protection fund financed by Italian banks will meet on Monday to decide how much money to inject in the rescue of ailing lender Banca Popolare di Bari, a source close to the matter said.

The source added that the bank’s capital levels must be raised to meet regulatory requirements by year-end, which is why the FITD fund must take a decision urgently.

The Bank of Italy put Popolare di Bari, the biggest lender in the poorer south of the country, under special administration earlier this month and the government has passed emergency measures worth up to 900 million euros ($997.5 million) to prop up the bank.

According to government sources, the FITD depositor fund should contribute to the rescue with 500 million euros, but fund officials have said it was not clear yet how much money the bank would need.

(Reporting by Stefano Bernabei, writing by Silvia Aloisi)