Compensation for retail bondholders in Banca Monte dei Paschi di Siena SpA will be made only if they bought the junior notes before Jan. 1, 2016, Reuters reported Feb. 1, citing a draft document written by the Italian government.

The refund will be based on the price they paid for the bonds. The compensation scheme is part of the planned state rescue of Monte dei Paschi, which requires subordinated debt holders to be subjected to burden-sharing measures.

The draft also allows the Italian government to buy new shares issued by the bank at a 25% discount to the share price when excluding the value of subscription rights.