Latest News:  
Beijing   Sunny/Cloudy    16 / 4   City Forecast


Italy's cost of borrowing touches new record amid investors' fears


17:13, November 10, 2011

File photo taken on Oct. 7, 2010 shows Italian Prime Minister Silvio Berlusconi reacts during a press conference in Rome, Italy. (Xinhua File Photo/Wang Qingqin)

MILAN, Italy, Nov. 9 (Xinhua) -- Italy's borrwing cost soared to breaking point on Wednesday, after Prime Minister Silvio Berlusconi announced on Tuesday that he would resign after reforms aimed at calming the eurozone turmoil was adopted.

In a clear sign of the evaporation of investor confidence, the yield on Italy's 10-year government bonds spiralled above a dangerous threshold of 7 percent to an euro-era record.

Greece, Portugal and Ireland were all forced to seek international bailout after their borrowing costs reached similar levels.

Unlike the above the three countries, a financial break down in Italy, which has an economy nearly three times the size of those of the three combined, would makes it far too large for the EU to bail out.

However, a risk of technical default of Italy is not likely in the short term, but it may become real if interest rates continue to attest at such high levels, Angelo Drusiani, a fund manager at Albertini Syz & Co. in Milan, told Xinhua.

Higher yields would make it more difficult and expensive for Italy to roll over its debts that according to the Italian central bank's data amounts to 1.89 trillion euros (2.56 trillion U.S. dollars).

【1】 【2】

  We Recommend  


Leave your comment0 comments

  1. Name


Selections for you

  1. Buddhist art exhibition held at the Museum of World Religions in Taipei

  2. U.S. aircraft carrier USS George Washington pulls in HK waters

  3. Sotheby's yellow diamond to sell at record price

  4. Lantern Festival kicks off at the Cheonggye stream in central Seoul

Most Popular


  1. Anxious US looks toward Asia
  2. Property curbs to remain despite price drop
  3. China's dilemma over Iran goes deeper
  4. China must act to save energy, cut emissions
  5. Will US, Israel attack Iran?
  6. Market blow away 'special air' rumors
  7. Bridges and factories could woo American hearts
  8. Keeping a cool head crucial ahead of big events
  9. US must ease restrictions on exports to China
  10. No easy answers in Greek debt crisis

What's happening in China

A Demographic Transformation

  1. Dip in CPI may lead to policy easing
  2. Chinese car production, sales exceed 15 million
  3. China launches animation licensing platform
  4. Chinese patents bring billions in profits
  5. China issues use rights for deserted island

PD Online Data

  1. The dragon dance
  2. Temple fairs in Beijing
  3. Lunar New Year´s Eve (I)
  4. Lunar New Year´s Eve (II)
  5. Little New Year (I)