Europe

Italian bank Monte Paschi edges closer to state bailout

Italian bank Monte dei Paschi di Siena edged closer to a state bailout with its capital raising efforts falling short of the 5 billion euros ($5.2 billion) it is seeking to stay afloat.

The bank said Thursday that its attempt to swap debt for equity had netted just 2.45 billion euros. The bank is expected to announce Friday if it is able to plug the gap.

The government has asked parliament to approve 20 billion euros to shore up Italy's troubled banks. Monte dei Paschi, the country's third-largest lender, is perceived as the most vulnerable.

The bank's troubles come amid broader concerns over Italy's banking system, which is weighed down by some 360 billion euros in bad loans. The bank's share price was up modestly on hopes of a bailout.