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ECB extends mandate for Italian bank Carige's administrators to September 30

ECB extends mandate for Italian bank Carige's administrators to September 30
Reflection of the sign of the European central Bank (ECB) is seen ahead of the news conference on the outcome of the Governing Council meeting, at the ECB headquarters in Frankfurt, Germany, March 7, 2019. REUTERS/Kai Pfaffenbach   -   Copyright  KAI PFAFFENBACH(Reuters)
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MILAN (Reuters) – Banca Carige said on Saturday the European Central Bank had extended until Sept. 30 a mandate to three temporary administrators who have been put in charge of the troubled Italian bank.

The bank said the ECB wanted to give the three administrators enough time to complete actions needed for the bank to comply with capital requirements in a sustainable manner.

The ECB has also extended the mandate of a three-member supervisory committee, the bank said.

Carige was placed under special administration at the start of the year after its top investor in December blocked a planned capital raising, derailing a rescue plan financed by the industry.

The bank has said it needs to fill a 630 million euro ($707.11 million) capital shortfall and the temporary administrators are seeking offers from potential buyers by mid-April.

Sources have told Reuters that U.S. funds Varde Partners and BlackRock plan to submit bids.

Under emergency measures approved in January following the ECB’s move, the Italian government stands ready to inject up to 1 billion euros in capital into the bank by the end of September should a private solution fail to come through.

(The story was refiled to fix typo in last paragraph)

(Reporting by Valentina Za; Editing by Andrew Heavens)

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