Italy is likely to need an EU rescue within six months as the country slides into deeper economic crisis and a credit crunch spreads to large companies, a top Italian bank has warned privately.
by Ambrose Evans-Pritchard
Italy’s second biggest bank, said its “index of solvency risk” for
Italy was already flashing warning signs as the worldwide bond rout
continued into a second week, pushing up borrowing costs.
“Time is running out fast,” said Mediobanca’s top analyst, Antonio
Guglielmi, in a confidential client note. “The Italian macro situation
has not improved over the last quarter, rather the contrary. Some 160
large corporates in Italy are now in special crisis administration.”
The report warned that Italy will “inevitably end up in an EU
bail-out request” over the next six months, unless it can count on low
borrowing costs and a broader recovery.
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