Italy is weighing offering state-backed guarantees for Banca Popolare di Bari SCpA's future bond issues, in a move that could also include a precautionary recapitalization of the bank, Reuters reported, citing Italian newspaper Il Sole 24 Ore.

At least €500 million of bonds could be guaranteed under a decree being considered by the Italian government, according to the Dec. 13 report.

The Italian government also intends to appoint a special commissioner for the bank, Reuters said.

In the week of Dec. 2, the bank reportedly requested the country's deposit guarantee fund Fondo Interbancario di Tutela dei Depositi to help it shore up its capital. CEO Vincenzo De Bustis signaled that the lender needs up to €1 billion in fresh capital.