Italian bank Banca Monte Dei Paschi di Siena (MPS) could raise €2.5bn in stages, Reuters reported citing local newspaper La Repubblica.

The capital raising plan, which was announced in June this year, has become complex due to the political turmoil caused by the fall of Prime Minister Mario Draghi’s national unity government.

Italy’s treasury has committed to offering €1.6bn capital support and MPS could receive the funds by 12 November this year, the La Repubblica report said.

Later, the bank could get more “injections of private funds, perhaps from the longed-for buyer that the Treasury has been seeking for years”, the report added.

Notably, in mid-July, MPS chief Luigi Lovaglio said the bank would raise €2.5bn under an “all or nothing” condition but that seems to have changed according to the documents published on the lender’s website in mid-August.

The lender dropped the “all or nothing” condition for the capital raise ahead of the shareholders’ meeting to vote for the rights issue on 15 September.

The Italian news outlet said that the change in conditions could be related to the bank’s plans to raise funds in stages or it could be aimed at mitigating risks for lenders in the underwriting consortium for the capital infusion, the report added.

MPS is confident that if market conditions remained favourable, it could complete the fundraising by October-end or early November, the documents showed.

Earlier this month, the bank reached a consensus with the workers union to cut 3,500 jobs as part of the recovery plan.