ROME: Italy is considering tightening a state guarantee scheme designed to help banks shed bad debts while weighing its extension to cushion the hit from the Ukraine war and the pandemic, according to people familiar with the matter. Since its 2016 launch, the “GACS” scheme has helped Italian banks offload €96 billion ($103 billion) in bad debts by softening the hit from the disposals to their earnings. As of end-2021 investors held €11.6 billion in GACS-backed debt, treasury data showed in April. The scheme in its current form expires on June 14. Four people briefed on discussions around the scheme"s renewal said Rome was considering reintroducing it with terms adjusted to reduce risks for taxpayers, possibly seeking an extension longer than 12 months.