Forum Topic

Italian interest rates: am I missing something?

So, have I got this right? Creditors are afraid that Italy won't be able to repay her debts, so they jack up the interest rates they expect in return for their money, making it almost certain that Italy will have to default, causing them to lose some of their capital.

Susan Kelly ● 5260d5 Comments

The interest rates the Italian Government has to pay have reached record levels. The Market is nervous about lending to Italian Government. The Italian Government has to borrow billions because it is spending far than it earns from taxes. Bigger loans and higher interest rates will add to the Italian Government's fiscal, taxation and liquidity problems. If Italy cannot raise the money to pay its debts, it will be unable to pay for its public services or to pay its public servants.And the Italians won't like that.The EU,the ECB and the IMF may think Italy may be too big to default.But can they raise the billions needed to bailout Italy after Greece, Portugal and Ireland.It remains to be seen if a credible Government

David Giles ● 5259d

Seems the Italians have finally tired of their superannuated sexpot leader.He will soon be like a Polish jew's foreskin...offski.

Keith Iddon ● 5259d

Sounds like more 'Greekonomics'.Here we go again.We'll all be looking down the side of the sofa soon to find 10 bob.

Keith Iddon ● 5260d

But they're ensuring that they don't get their money back!

Susan Kelly ● 5260d

Yep, that's what I understood, the more likely the lender will get their money back the lower the interest, typical bankers I'm afraid.

Vanessa Smith ● 5260d