Monday, November 28, 2011

IMF says no discussions with Italy on financing plan

HONG KONG (Nov 28): The International Monetary Fund said on Monday it is not in discussions with Italian authorities on a financing plan, pouring cold water on speculation that it was preparing an aid package as the euro zone debt crisis deepens.

In response to media queries, an IMF spokesperson said: "There are no discussions with the Italian authorities on a program for IMF financing."

The euro surged and stock markets in Asia rose on Monday after Italian newspaper La Stampa said the IMF was preparing an aid package for Italy, but doubts about the feasibility of such a reported plan kept the outlook uncertain.

The euro briefly rose 0.6 percent to $1.3331 after the unsourced report said up to 600 billion euros could be made available at a rate of between 4-5 percent to give Italy breathing space for 18 months.

A source with knowledge of the matter told Reuters that contacts between the IMF and Rome had intensified but added it was unclear what form of support could be offered if a market selloff on Monday forced immediate action.

Official sources in Rome said they were unaware of any request for assistance from Italy. - Reuters

No comments:

Post a Comment