Tremonti bond legislation to go in asset sale decree-source

Tremonti bond legislation to go in asset sale decree-source

ROME (Reuters) - Italian legislation to help banks with new bonds underwritten by the state will go into a decree on asset sales already approved on June 15, a government source told Reuters on Tuesday.

The Italian government has agreed to give state backing to Banca Monte dei Paschi di Siena in the form of special bonds similar to previous instruments known as "Tremonti bonds", to plug a capital gap.

Including the legislation in the decree will allow the bank to use the bonds almost immediately, the source said.

(Reporting By Giuseppe Fonte, writing by Catherine Hornby)