MILAN, June 8 (Reuters) - Intesa Sanpaolo is willing to put in fresh capital to help prop up Italy’s troubled Veneto banks before they can be bailed out by the state, but only if other domestic lenders pitch in, newspaper La Repubblica said on Thursday.
* The newspaper added that Italian Economy Minister Pier Carlo Padoan has asked the country’s two biggest banks, Intesa Sanpaolo and UniCredit, to take on one of the Veneto banks each, following the example of Santander’s takeover of Spanish lender Banco Popular.
* Banca Popolare di Vicenza and Veneto Banca, both based in the north-eastern Veneto region, have requested a state bailout to help fill a combined capital shortfall of 6.4 billion euros ($7.21 billion). However, sources have said the European Commission has demanded an additional injection of 1.2 billion euros by private investors before taxpayer money can be used.
* Rome has so far struggled to find investors willing to put up the money.
* Intesa’s agreement in principle came on the condition that other Italian banks would participate in the 1.2 billion euro private capital injection, La Repubblica said.
* The Treasury declined to comment. Intesa Sanpaolo and UniCredit could not immediately be reached for comment.
* Intesa Sanpaolo has repeatedly said that it had already done its part by injecting money in banking fund Atlante, which is now the top shareholder in the two regional lenders.($1 = 0.8879 euros) (Reporting by Agnieszka Flak and Paola Arosio in Milan and Giuseppe Fonte in Rome; editing by Jason Neely)