MILAN, March 15 Reuters Italys Cassa Centrale Banca CCB is reconsidering the terms at which it could take a controlling stake in rival Carige in light of mounting losses at the Genoabased bank, three sources close to the matter said on Monday.

Unlisted CCB currently holds 8 of Carige following a rescue in 2019 led by Italys FITD depositor protection fund which is financed through contributions by Italian banks and has an option to acquire FITDs 80 stake at a steep discount by the end of 2021.

However, the sources said CCBs interest in its rival had waned after Cariges losses tripled in 2020 compared to those expected under a business plan two years ago, due to pandemicrelated loan loss provisions and writedowns of tax assets.

CCB is due to discuss options in relation to Carige on Monday, two of the sources said. One said CCB could set strict conditions on the investment, including a potential further cash injection by FITD to offset the impact of the pandemic.

As a fund financed by lenders, the FITD cannot be a longterm investor in a bank, but sweetening the deal for CCB would put further financial strain on its members, which have already been paying to prop up a number of failing rivals in recent years.

The fund shouldered the bulk of a 700million euro cash injection that was needed in 2019 to keep Carige afloat, while CCB invested 63 million euros.

A decision on the matter is expected in the coming weeks, two of the sources said. CCB declined to comment….