Monte dei Paschi agreed with the European Central Bank a new restructuring plan based on a 5 billion-euro (4.29 billion pounds) capital boost and the sale of 28 billion euros (24.01 billion pounds) worth of bad loans through a securitisation.

Morelli's appointment "is a break from the past that will make it easier for the bank to implement its new business plan, finalise the largest securitisation of bad loans ever done in Italy and to grow as a healthy and sustainable lender", Padoan said speaking in parliament.

(Reporting by Giuseppe Fonte; writing by Francesca Landini; editing by Agnieszka Flak)