Italy’s government is borrowing money for free
For it was little one there, not just that which is a sign of the government backed by a central banks to a slow down of firepower, the Premier from the whatever it takes to rebuild the economy, from a loan there have savaged.
Officials were already pumped trillions of economic crisis, to cushion the impact, and they are also more likely to provide financial assistance to pressure growing, cash-strapped workers and businesses, particularly as a second wave of coronavirus infection threatens to derail a fragile recovery.
Italy has already sold the bonds, dated from the record low yields, despite a downgrade by Fitch Ratings in April he places himself on the credit rating of the notch above junk. Italy IMF expects the economy to contract 10.6% this year and forecasts government debt to exceed 160% Gross Domestic Product at the end of 2020, up from 135% a year.
“We are still in a global pandemic in the middle; [yet] Italy fund that they can be free, ‘he says rates to fight Rabobank Richard McGuire. Investors are still waiting for help more than the European Central Bank, told CNN Business.
bond investors Central Bank and turned guarantee that once the stimulus taps European chance as early as December, by adding more billions $ 1.35 trillion program to purchase soccer.
And it is not benefiting from the Italy plans to transfer huge sums of money in the European Union and especially in the states hit part of a € 750 billion ($ 882 billion) fund-recovery after a pandemic.
He went to a region € 86.6 billion ($ 101.7 billion) from the fund Berenberg economist Holger Schmieding, chief.
“Thanks to the prospect of money flow that eventually even the fiscally challenged [EU] the member states can only borrow most of the situations in the markets, said on Wednesday noting clients.