(Bloomberg) -- Banca Monte Dei Paschi di Siena SpA Chief Executive Officer Marco Morelli will not seek a new term after a general meeting in April, as the lender struggles to find an exit from state control.

Morelli told board members and managers that he won’t be available for a new term after the April 6th meeting, the Siena-based bank said in a statement on Thursday. Italy’s economy and finance ministers have been informed of the decision, according to the statement.

“It has been three and a half years of extraordinary personal and professional experience and engagement,” Morelli, 58, said in the statement.

Monte Paschi has struggled with profitability and a legacy of bad loans after being bailed out by the state in 2017. In December, the European Commission and the finance ministry agreed to postpone the presentation of a plan for the state to sell off its 68% stake in the bank “in line with the ongoing discussion regarding a bank de-risking operation.”

This month, Monte Paschi reported income targets that missed estimates set out in its restructuring plan which may force the bank to cut an additional 100 million euros ($110 million) of costs.

To contact the reporter on this story: Ross Larsen in Rome at rlarsen2@bloomberg.net

To contact the editors responsible for this story: Sree Vidya Bhaktavatsalam at sbhaktavatsa@bloomberg.net, Jerrold Colten, Daniele Lepido

©2020 Bloomberg L.P.