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ROME, June 7 (Reuters) - The only option Italy is considering to help two ailing Veneto-based banks is that of a precautionary recapitalisation by the state, a government source said on Wednesday.
The source dismissed a report in Corriere della Sera daily which said the government was also exploring the possibility of an "orderly liquidation" of the two lenders, Banca Popolare di Vicenza and Veneto Banca.
The two banks are stuck in negotiations with European authorities over whether they can be rescued by the state, with the European Commission demanding a capital injection of 1.2 billion euros by private investors before any state money can be used. (Reporting by Giuseppe Fonte, editing by Silvia Aloisi)