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Monte dei Paschi CEO told board banks needs 1.5-2.0 bln euros in capital-source

ROME, Nov 2 (Reuters) - Monte dei Paschi CEO Guido Bastianini told directors at a board meeting on Monday the bank needs 1.5-2.0 billion euros ($1.7-$2.3 billion) in cash to avoid breaching capital requirements early next year, a source with knowledge of the matter said.

Bastianini mentioned both a rights issue and an Additional Tier 1 (AT1) issue as options to fill the gap, adding however the AT1 bond was problematic due to its high cost.

Monte dei Paschi declined to comment.

$1 = 0.8600 euros Reporting by Giuseppe Fonte, editing by Valentina Za and Giselda Vagnoni

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