IMF: the Primary goal of Italy - to restore trust of investorsthe Primary goal of Italy which is necessary for solving in the shortest terms, is a restoration of trust of investors to abilities of the country to carry out necessary structural reforms. A corresponding position in interview to the Italian mass-media the chief executive of the International currency fund has stated (IMF) of Arrigo Sadun. He has informed that it does not know about the credit at a rate of 44 mlrd euro which the country government has ostensibly asked for IMF, and about intentions of Italy to address for a similar loan. “ the main thing now for Italy is to restore trust of the markets in ability of the government to carry out the co-ordinated structural reforms, the rest has no value “ - has commented on A.Sadun a situation with the possible credit.
As the representative of IMF has noted, at the moment the fund carries on negotiations concerning the initiative to direct to Italy inspectors who will prepare the report on a condition of public finances of the country. However, as he said, completely to co-ordinate details of similar inspection, full formation of the new government is necessary, transfers Reuters. Earlier it was informed that inspectors of IMF will appear in Rome in the end of November 2011ã. Also will quarterly carry out monitoring of economic conditions in the country.
A.Sadun has estimated risks of a new phase of recession in Europe as probable. As he said, new recession can threaten not only to the countries, already getting financial support from IMF, but also to other states of region. Simultaneously the representative of IMF has informed that Italy can cope with problems. “ Italy - the rich country with the developed economy. State debt reduction on 30 mlrd euro annually is not for it an impracticable problem “ - he considers.
earlier in the Italian press there were messages that the IMF has suggested to open for the country the emergency demand line of credit on 44 mlrd euro “ as a safety measure “. In the beginning of November 2011ã. Silvio Berlusconi (at that point in time the prime minister - the minister of Italy) has informed that has rejected the similar offer, having specified that the country will try to cope with the arisen complexities independently.
the day before the German economist, the representative of operating council of European Central Bank Jens Vajdman also has expressed confidence that Italy, despite high cost obluzhivanija a state debt, can solve the problems. “ Italy can independently solve the problems, it only a question of political will “ - has declared J.Vajdman, having added that the country does not use completely the economic potential. Thus the German economist has excluded probability of repetition in Italy “ the Greek scenario “ (when the private sector had to agree on voluntary write-off of 50 % on state bonds of Greece) and has expressed hope that the government which will be generated by the new prime minister - minister Mario Monti, will appear well-founded in the face of financial difficulties.
in the meantime on November, 14th 2011ã. The Ministry of Finance of Italy has spent the next auction on placing of intermediate term state bonds: 5 - summer state bonds have been placed under record profitableness in 6,29 % against 5,32 % during the previous auction spent one month ago.
the attention of the financial markets to the given auction was raised because it became the first since the moment when the president of Italy Dzhordzhio Napolitano has authorised the known economist and the former eurocommissioner M.Monti to generate the new cabinet. M. Monti has typed enough support to head the new government of Italy after S.Berluskoni has submitted the application on resignation. Now investors hope that the new government can deduce the country from crisis.
we will remind, during the auctions on November, 9th market profitableness 10 - summer state bonds of Italy has exceeded a critical mark in 7 % which analysts name “ a non-return point “. At cost of loans at level of 7 % financing of budgetary deficiency and a state debt of Italy becomes inconvenient, and to the country the emergency help of partners in an eurozone or IMF can be demanded. After rates on similar state papers of Greece, Portugal and Ireland have exceeded 7 %, these countries of an eurozone have been compelled to address for the international financial help.
the Public debt of Italy makes astronomical for an eurozone 1,9 trln euro, and very slow growth of national economy raises risk of a financial trouble.