Italy likely to need bailout, Mediobanca warns

Italy is likely to need a bailout as the country slides into deeper fiscal crisis and a credit crunch spreads to large companies, Mediobanca’s analyst Antonio Guglielmi has warned.

“Time is running out fast,” Antonio Guglielmi said in a private client note first reported by The Daily Telegraph.

“The Italian macro situation has not improved over the last quarter, rather the contrary. Some 160 large corporations in Italy are now in special crisis administration,” he said.

Mediobanca, Italy’s second bank, said its “index of solvency risk” for Italy was already flashing warning signs as a worldwide bond rout pushed up borrowing costs.

Italy will “inevitably end up in an EU bailout request” over the next six months unless borrowing costs drop and the economy shifts to a broad recovery, Guglielmi has told the Telegraph.

Italy’s €2.1trn debt is the world’s third largest after those of the United States and Japan, the Telegraph said.


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