With more expensive credit default swaps, Italy becomes riskier than Romania, Bulgaria
The cost of insuring Italy's debt – of credit default swaps – has exceeded the one calculated for Bulgaria and Romania, according to Wall Street Journal Europe. Italy's CSD cost grew to USD 289,000 for a debt of USD 10 million, compared to USD 265,000 in Romania's case, and USD 247,000, in Bulgaria's. The cost of insuring Italian sovereign debt jumped 35 basis points to 282 basis points, according to BNP Parisbas SA prices for credit-default swaps, Bloomberg had recently written.
The International Monetary Fund has urged Italy to cut its public debt. All eyes have recently been on Greece, then worries about Italy's fate followed suit. Moody's has also recently downgraded Ireland to 'Junk', fueling anxiety on international markets .
editor@romania-insider.com
(photo: Sxc.hu)
