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EU Commission in contact with Rome over plan for new Alitalia loan

BRUSSELS, Nov 25 (Reuters) - The European Commission is in close contact with Italian authorities over Rome's plan to grant a new loan to ailing flagship carrier Alitalia, a spokeswoman said on Monday.

According to two sources with knowledge of the matter, the Italian government will grant a new 400 million euro loan to the loss-making airline to keep it in business in the absence of a prospective buyer.

Alitalia has already received 900 million euros from the government since May 2017, but has repaid neither that debt nor the 150 million euros in interest due on it.

The Commission has been investigating whether the 900-million-euro loan complies with EU State aid rules.

(Reporting by Foo Yun Chee; writing by Francesca Landini, editing by Valentina Za)