MILAN The board of ailing Italian lender Banca Monte dei Paschi di Siena will meet on Wednesday to appoint a new CEO, Economy Minister Pier Carlo Padoan said on Monday.
The Italian Treasury is the largest shareholder of the Tuscan bank.
Speaking at the pre-recording of a TV programme, the minister said the European Central Bank would discuss Monte dei Paschi at a meeting on Tuesday.
On Sunday a source close to the matter said the ECB had given a preliminary nod to the possible appointment of Marco Morelli, head of Bank of America Merrill Lynch in Italy, as CEO.
The bank needs to move quickly to implement an emergency rescue plan which includes a capital increase of up to 5 billion euros (4.2 billion pounds) , and avert the risk of being wound down.
Asked if the cash call would take place before the end of this year, Padoan said it would happen "when the markets are ready to absorb it".
Uncertainty over the outcome of a referendum on constitutional reform to be held in November or December complicates the timing of the capital increase, he added.
(Reporting by Alberto Sisto, writing by Stephen Jewkes)