The Italian government is working on a plan to take over about 14 billion euros in bad loans from the large bank UniCredit.

Sources tell

Reuters

news

agency

that a takeover should make it easier to take over the Italian bank Monte dei Paschi di Siena by UniCredit.

Monte dei Paschi is largely government-owned, after Rome had to come to the aid of the bank in 2017 with billions to prevent it from falling.

Now Italy would like to take over about 60 percent of UniCredit's problem loans, as well as some risk loans from Monte dei Paschi.

Developments are closely monitored by the European Central Bank (ECB).

The Italian government would like a takeover deal to be approved at UniCredit's annual meeting in April.