Giles Coghlan LLB, Lth, MA
Financial Source
Bloomberg reports that Italy has a €123.2 billion debt mountain from COVID-backed state support which, as of June 30, is outstanding. The debt has been rising too as it has increased from the previous quarter of €118 billion. Despite not being the largest country it has the largest government-guaranteed debt yet to be repaid in the Eurozone. Check out below the growing level of Italian debt from the state-backed loans.
The problem that is building is that the energy crisis is lingering on, inflation remains high, and Italy is expected to contract 0.2% in 2023, according to the IMF. This means that the debt burden can be a growing political worry as more and more companies will struggle to meet repayments on many of these loans (just under 50%) as they mature from 2024 onwards.
Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.