MILAN -Telecom Italia (TIM) has started talks with a pool of banks for a new credit line worth around 3 billion euros ($3.3 billion) that could be partly guaranteed by Italy's trade insurer SACE, three sources familiar with the matter said.

The debt-laden former phone monopoly, hit by multiple rating downgrades following a record annual loss last year, is pressing ahead with plans to reorganise its business by spinning off assets.

Telecom Italia has initiated talks with a pool of banks, including UniCredit, BNP Paribas, Credit Agricole and Santander over the credit line deal, the sources said.

The banks were not immediately available for comment.

Under a guarantee scheme Italy used in the first COVID-19 wave in 2020 to help companies raise new debt, SACE is allowed to cover up to 80% of financing.

However, there are doubts as to whether TIM is eligible to tap such a scheme, one of the sources said.

News about talks between TIM, SACE and banks over a possible 3 billion euro loan was first reported by Bloomberg News.

  - Reuters