Decree ready on state guarantee for Monte dei Paschi bonds - source

ROME (Reuters) - A Treasury decree necessary for the Italian state to be able to provide a guarantee for bonds issued by troubled lender Monte dei Paschi di Siena is ready, a government source said on Thursday. Italy pushed through measures in late December to help ailing banks by providing a guarantee on their debt and injecting fresh capital, starting with Monte dei Paschi which risked being wound down after a failed 5 billion euro share issue. Monte dei Paschi, which needs to quickly raise funds after suffering a deposit outflow, will immediately tap the state guarantee on a 2 billion bond it is ready to issue. The bank won't sell the bond on the market but will retain it to use it as collateral in repo deals, sources said on Wednesday. The government source said state auditors could sign off on the decree as early as Thursday. (Reporting by Giuseppe Fonte, writing by Valentina Za, editing by Stefano Bernabei)