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MILAN (Reuters) -Italy attracted strong interest from funds when it sold 25% of Monte dei Paschi di Siena (MPS) for 920 million euros ($1 billion) on Monday, advancing plans to re-privatise the world's oldest bank two years after a failed first attempt. The sale is a testimony to the progress Italian banks have made in cleaning up their finances, which contributed to Moody's unexpected decision on Friday to upgrade its outlook on the country's credit rating to stable from negative. It also buys Italy time to find a more permanent solution for its fifth-largest listed bank, including via a merger deal that a dearth of buyers made hard to pursue in the near term.

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