Italy's borrowing costs jump again

Italy had to pay nearly double the interest rates to borrow money in a six-month bond auction on Friday, VOA reports.

Izvor: VOA

Friday, 25.11.2011.

21:12

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Italy had to pay nearly double the interest rates to borrow money in a six-month bond auction on Friday, VOA reports. In Friday's auction of six-month Italian bonds, the government had to agree to pay 6.5 percent interest, nearly double the rate in a similar auction last month. Italy's borrowing costs jump again Italy's sovereign debt currently is estimated at $2.6 trillion - far more than Greece or other European countries that have been given EU and IMF bailouts. Longer-term interest rates for Italian bonds are once again above 7 percent - rates similar to those faced by Greece, Ireland and Portugal when they were forced to seek international bailouts. The office of Italy's new Prime Minister Mario Monti issued a statement Friday saying that Germany and France had agreed with him at Thursday's mini-summit of the eurozones three largest economies that a debt collapse in Italy would be "the end of the euro." Both French President Nicolas Sarkozy and German Chancellor Angela Merkel said at Thursday's meeting they would support Italy and the euro, and called for changes to European treaties to force better fiscal policies. However, there was no agreement about increasing the role of the European Central Bank in supporting troubled eurozone economies, or selling unified eurobonds.

Italy's borrowing costs jump again

Italy's sovereign debt currently is estimated at $2.6 trillion - far more than Greece or other European countries that have been given EU and IMF bailouts.

Longer-term interest rates for Italian bonds are once again above 7 percent - rates similar to those faced by Greece, Ireland and Portugal when they were forced to seek international bailouts.

The office of Italy's new Prime Minister Mario Monti issued a statement Friday saying that Germany and France had agreed with him at Thursday's mini-summit of the eurozones three largest economies that a debt collapse in Italy would be "the end of the euro."

Both French President Nicolas Sarkozy and German Chancellor Angela Merkel said at Thursday's meeting they would support Italy and the euro, and called for changes to European treaties to force better fiscal policies. However, there was no agreement about increasing the role of the European Central Bank in supporting troubled eurozone economies, or selling unified eurobonds.

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