MILAN, Reuters -Telecom Italia has initiated talks with a number of banks about a new credit card line. It could amount to around 3 billion Euros ($3.3 billion). These lines may be partially guaranteed by SACE, Italy’s trade insurance. Three sources with knowledge of the matter confirmed this.

Following a massive annual loss, multiple ratings downgrades have hit the debt-laden phone monopoly. However, it is moving ahead with plans to restructure its business through spinoffs.

Telecom Italia According to sources, BIT: has begun talks with several banks including UniCredit (OTC), Credit Agricole, Credit Agricole and Santander (BME) about the credit line agreement.

However, the banks weren’t immediately available to comment.

SACE may cover up to 80 percent of the financing under an Italian guarantee scheme, which was used by Italy in its first COVID-19 wave 2020.

One source said that there were doubts about whether TIM can tap into such a program.

Bloomberg News first reported news about discussions between TIM and SACE regarding a possible loan of 3 billion euros.

($1 = 0.9220 euros)