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Italy Denies Bailout !

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  • 28-11-2011 3:11pm
    #1
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭


    Where have we heard this one before !

    In todays indo ....

    Monday November 28 2011
    THE International Monetary Fund today denied it was holding talks with Italy about a bailout for Italy.
    "There are no discussions with the Italian authorities on a programme for IMF financing," said a one-sentence statement released by an important IMF spokesperson.

    The denial followed a report by the Italian newspaper La Stampa claiming that the fund could financially assist Italy with up to €600 billion in aid.

    The money would give Prime Minister Mario Monti a window of 12 to 18 months to implement urgent budget cuts and growth-boosting reforms "by removing the necessity of having to refinance the debt," the report said.

    It added that the IMF would guarantee rates of 4-5pc on the loan - far better than the borrowing costs on commercial markets, where the rate on two-year and five-year government bonds has gone above 7pc.

    Italy needs to refinance about €400 billion in debt next year. The country's €1.9-trillion public debt and low growth rate have spooked the markets.


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    #2
    andrew
    Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 3,368 Mod ✭✭✭✭andrew


    Well, it could be true. The IMF aren't in discussions with Italy, but a European institution could be; the ECB have been buying Italian bonds for a while now already.


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    #3
    later12
    Closed Accounts Posts: 11,299 ✭✭✭✭later12


    handlemaster wrote: »
    The denial followed a report by the Italian newspaper La Stampa claiming that the fund could financially assist Italy with up to €600 billion in aid.

    On this occasion, I'm going to side with Italy and say La Stampa are wrong.

    The IMF has a funding capability of somewhere in the region of €300 billion. It simply cannot afford to save Italy on those figures.

    Saving Italy is going to be done by the ECB if anyone; as Andrew indicated they have been active on Italian debt in the secondary market for some time.

    It seems that all ponderings on the European debt crisis must take on at least one wild, unsubstantiated guess, and mine would be that the IMF will be responsible for no more than maybe €50-€70 bn of any Italian rescue


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    #4
    syklops
    Closed Accounts Posts: 18,966 ✭✭✭✭syklops


    THE International Monetary Fund today denied it was holding talks with Italy about a bailout for Italy.

    Sounds familiar doesn't it?


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