Italy’s government is borrowing money for free

Italy’s government is borrowing money for free

EU economics and especially to Greece on Tuesday issued three years after the bond paid, so there is no cure. To the investors does not alter the bond of that it grows as far as 2024.

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.

Federal Reserve chairman Powell says that before the month is little risk of overdoing moving when they do too little to help “weak recovery.”
Even the International Monetary Fund, known for taking a tough line to rack up unsustainable governments, which equals to pay back the aid declared soon. “Further need help prevent and setbacks with which the plan is not withdrawn prematurely,” said Gita Gopinath, chief economist in a report published Tuesday.
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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.

Cheaply due to the unique ability to raise the Italian central bank intervention weekend disconnect between the financial markets and created on the real economy.

“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.

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