Mercoledì, 17 Ottobre 2018

Moody's monitoring Italy, says may need ECB help


Rome, April 29 - Moody's has said it is monitoring
the situation in Italy after Premier Enrico Letta's left-right
government was sworn in at the weekend and it warned the new
administration may have to seek help from European Central Bank
(ECB) if borrowing costs rise.
The rating agency said it had concerns about whether the
government will be able to deliver the reforms it deems
necessary to revive the Italian economy, which is enduring its
longest recession in 20 years after a decade of sluggish growth.
Letta's apparently unnatural coalition sees his centre-left
Democratic Party working with its long-standing adversary,
ex-premier Silvio Berlusconi's centre-right People of Freedom
(PdL), as well as former premier Mario Monti's Civic Choice
"We cannot yet rule out the possibility that Italy will end
up asking for help from the European Central Bank and the
European Stability Mechanism (bailout fund)," Dietmar Hornung,
senior credit officer at Moody's, told Rome-based daily La
Hornung added that Moody's will closely monitor the work of
the new government, which faces a confidence vote in the Lower
House later on Monday.
Moody's said on Friday it had kept Italy's sovereign debt
rating at Baa2 as the country's borrowing costs were relatively
low at the moment.
But it kept its negative outlook for Italian sovereign debt
because of the prolonged recession.

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