Lunedì, 22 Ottobre 2018

122 billion euros of Italian debt to be refinanced in 2013


Rome, August 26 - More than 122 billion euros of
Italian public debt must be refinanced by the end of the year,
according to a study released Monday by the business association
Unimpresa pointed out that the timing of the massive
refinancing required means that if Italy's teetering right-left
government falls before the end of the year, market jitters over
whether the country has the political wherewithal to avoid
default might trigger major repercussions on Italy's bond
interest rates and spread with the German bund benchmark.
The spread is a key measure of Italy's borrowing costs and
of investor confidence in the country's ability to pay off its
enormous sovereign debt.
Senior figures of Silvio Berlusconi's People of Freedom
Party (PdL) - the junior partner in the current government led
by the Democratic Party's (PD) Enrico Letta - have threatened to
pull the plug on the governing majority under two conditions.
The PdL has staked its political future on the repeal of
the IMU property tax, a major campaign promise that helped fuel
the right's political comeback to second place in February's
PdL leaders have also threatened to withdraw their support
for the current government if their PD counterparts in the
Senate banish Berlusconi from the Upper House in a September
vote - a measure triggered by the three-time premier's
definitive conviction for tax fraud this month.
So far, PD leaders have vowed to boot the media tycoon and
give him a six-year ban on holding public office even if it
means going to new elections.
''To parliament and the government, and hence to all
parties, we ask a sense of responsibility.
Political stability is decisive for financial markets and
an eventual crisis of the majority risks wasting the positive
results so far achieved precisely on the cost of (debt)
Hopes of economic recovery would be truly compromised,''
said Unimpresa President Paolo Longobardi.
Italian zero-coupon bonds worth 74.5 billion euros, Italian
treasury bonds worth 37.8 billion euros, and 10.6 billion euros
worth of zero-coupon treasury certificates are all due to be
paid out and covered anew with fresh treasury debt by the end of
2013, Unimpresa reported.

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