July 29 (Reuters) - Italy’s third-biggest lender, Monte dei Paschi di Siena, has received the approval of the European Central Bank for a plan to sell its bad loans, a source close to the matter said on Friday.
Monte dei Paschi di Siena, the world’s oldest bank, said earlier this month that the ECB had told it to cut its net doubtful loans to 14.6 billion euros ($16.3 billion) in 2018 from 24.2 billion euros in 2015.
The source gave no details of the bank’s plan to comply with the ECB’s demand.
Saddled with a mountain of bad loans and weakened by years of losses, Monte dei Paschi is racing against the clock to meet the concerns of European regulators, which are due to release the findings of a new round of bank stress tests later on Friday. ($1 = 0.8962 euros) (Reporting by Reuters staff)