Reduction of a successful auction of bonds Italian borrowing costs by half to Rome.According to preliminary data issued by the Italian Ministry of Finance that the bonds were sold for six months at an interest rate of 3.25% or half the rate of what Italy had to pay at auction was similar in November.
As has been interpreted as another sign of investor confidence in the ability of the government of Prime Minister Mario Monti to address the economic problems of Italy, the greater the demand by about 50% the size of the issue of $ 9 billion euros, or $ 11.7 billion. In the second auction, which includes government bonds for two years, has been calculated at the effective interest rate 4.85%, well below the level of 7% high reached in interest rates recently amid market concerns about the creditworthiness of Italy. Auctions and the proceeds amounted to 10.7 billion euros to the Italian Treasury.
The Italian Ministry of Finance has provided bonds for six months, $ 9 billion euros as well as bonds for two years worth of 2.5 billion euros. The auction came amid a new high interest rates on government bonds of Italy in recent times with the rise of the return on bonds of the decimal point to a new level of the view of many analysts that he can not afford the third-largest economy in the euro area.
Earlier this month, parliament approved a package of austerity measures worth about 30 billion euros, said her former European Commissioner Monti are necessary in order to save Italy from bankruptcy.
The Prime Minister is under pressure to address the public debt of 1.9 trillion euros, more than 20% of the GDP of Italy.
The austerity package consisting mostly of new taxes aimed at bridging the gaps in the state budget in order to assist the Government to meet its objectives to adjust the budget by the year 2013.
However, Monte says that the second phase of the government reforms will aim to implement structural reforms of the economy, including the liberalization of certain sectors with the prospect of privatizing some state assets. The Italian economy shrank by 0.2% in the third quarter is expected to slip into recession next year