Italy's Treasury is waiting for a deadline on March 1 to grant a state bailout worth $3.9 million euros requested by Monte dei Paschi, the third largest lender in the country, according to a source familiar with the matter.

The source rejected a report from Bloomberg that said that the government had decided to postpone the bank's requested bailout and let the next government to make the final decision.

Monte dei Paschi filed a request to be bailed out in 2012 when it failed to meet strict capital requirements imposed by European regulators.

Additing to the issue, consumer watchdog Codacons appealed to suspend Monte's bailout because it wanted to the bank to be nationalized.

Last November, Monte dei Paschi had to increase its state bailout by 500 million euros due to loss-making derivatives traders made by the previous management.