Leta i den här bloggen


Italy needs a precautionary rescue of up to $700bn from the US and the major powers

to head off the danger of a global crisis, a bail-out veteran from the International Monetary Fund has warned.

Ashoka Mody, the IMF’s former deputy director in Europe, said economic fall-out from the coronavirus is pushing Italy to the brink of “vicious negative feedback loop”, raising the risk of a financial chain-reaction through the international system. 

Italy’s sovereign debt is the world’s third largest in absolute terms at over €2 trillion and is tightly interwoven with the banking system. 

Italian bank stocks have halved in value since mid-February, almost guaranteeing a credit crunch and again raising the spectre of a sovereign-bank ‘doom-loop’ akin to events in 2011. 

Ambrose Evans-Pritchard, Telegraph 11 March 2020

The EU can rewrite its rules and let governments borrow more to counter the crisis or let Italy go the way of Greece


Inga kommentarer: