ROME (Reuters – Italy will negotiate with the European Commission a prolonged extension of the deadline for Rome to sell its 64% share in the bank Monte dei Paschi di Siena, a source familiar said to Reuters.

According to the source, the Treasury could request an extension for “years” without providing details.

After talks with Italy’s second bank UniCredit about a merger with the Tuscan lender ended on Sunday, this is the latest news.

The terms of the state bailout of MPS, which Italy and Brussels agreed to in 2017, required that the Treasury cut its 64% share in the bank by the time its results in 2021 were approved. This would mean mid-2022.

UniCredit’s capital demand of 6.3 billion Euros ($7.33 Billion) was deemed too expensive to allow MPS to be offloaded. The Treasury must now address the bank’s capital needs, which MPS put at 2.5 Billion euros.

Two sources familiar with the situation told Reuters Monday that a cash injection could exceed this figure. According to one source, it could be as high as 3.5 Billion, which is 3.5 times current market values.

Capital increases would be made as market transactions to eliminate any burden sharing with junior bondholders, who will have to bear losses according to European Union rules.

Private investors contributed 2.28 billion Euros to the MPS 2017 rescue via a debt-to equity swap

($1 = 0.8593 euros)