In a very difficult day for Italian finance, caught in the grip of speculation on government and banking bonds, the governor of Bank of Italy, Mario Draghi, tries to reassure the markets with a note on the capital solidity of the banks and public accounts.
“I am certain, on the basis of our analyzes – writes the governor from Aix en Provence, where he is attending a meeting of economists – that Italian intermediaries will pass the stress tests underway at the European level by a significant margin, confirming the adequacy of the their degree of capitalization. In Italy, the credit expansion, which has been underway for months, "is higher than that of the rest of the euro area - continues Draghi - and will support bank revenues".
As for the maneuver launched by the government, the governor underlined how the tensions "arise from the fears of some analysts about the conditions of Italy's public finances". The budget law, “as President Trichet said yesterday, constitutes an important and credible step for the consolidation of public finances. The advance of the measures makes the achievement of a balanced budget in 2014 credible and the start of a downward trend in the debt-GDP ratio”.
Attachments: Speech_by_Mario_Draghi.pdf
