UniCredit is expected to assume Banca Monte dei Paschi’s junior debt liabilities as part of the deal to takeover the bank from the Italian government. The news comes as UniCredit and the Italian government are negotiating a deal to sell the government’s 64% stake gained after a bailout of Banca Monte in 2017. The Italian government is bound to exit the bank by the end of this year to make good on its EU deadline. In a bid to close the deal, the Roman Treasury has already extended favorable terms to UniCredit. Legal liabilities of Banca Monte were also reduced by €3.8bn ($4.5bn) to sweeten the deal. UniCredit’s acceptance of assuming the junior debt takes the deal one step closer to execution.