Arab Today, arab today imf warns italy \vulnerable\ despite monti efforts
Last Updated : GMT 11:12:01
Arab Today, arab today
Arab Today, arab today

IMF warns Italy \'vulnerable\' despite Monti efforts

Arab Today, arab today

Arab Today, arab today IMF warns Italy \'vulnerable\' despite Monti efforts

Rome - AFP

The IMF warned Tuesday that Italy\'s economy remained \"vulnerable\" to the euro debt crisis and could have a knock-on effect globally despite \"strong efforts\" being made by Prime Minister Mario Monti. The International Monetary Fund said it expected a recovery to \"take hold\" only at the start of next year with a rise in exports but said growth rates would continue to lag behind the rest of the eurozone without major reforms. It also said that Italian banks were broadly stable but still heavily reliant on liquidity from the European Central Bank and that lenders were becoming too exposed to sovereign risk and rising loan rates. While the IMF kept its economic growth forecasts at minus 1.9 percent for this year and minus 0.3 percent in 2013, it said Italy\'s debt would rise to 125.8 percent of gross domestic product this year and that the deficit would decline only to 2.6 percent. But the Fund also said that Italy\'s primary surplus would rise to more than 4.0 percent of GDP by 2014 -- the highest level in the eurozone. \"The authorities have embarked on an ambitious agenda to secure sustainability and promote growth,\" the IMF said in an annual report. \"Despite these strong efforts, Italy remains vulnerable to contagion from the euro area crisis, with spillover consequences for the region and globally.\" The report stressed the importance of keeping up the reform momentum with continued public support for Monti, whose popularity ratings have dipped but remain relatively high as budget cuts have taken holds. \"The key will be forceful and expeditious implementation of these reforms. To the extent that public support weakens then this will become more challenging,\" said Kenneth Kang, the head of the IMF\'s mission to Italy. \"Public support is still there and it is important that it remains there.\" The IMF also urged Italy to cut spending and lower taxes in the medium-term and to implement structural reforms like overhauling the labour market, introducing laws that made it easier to do business and boost competition in the service sector. The Fund hailed a new constitutional balanced budget law as \"an important tool for strengthening fiscal discipline and policymaking\" and praised former European commissioner Monti\'s efforts to curb public finances in the short term. The report said banks had strengthened their capital positions but cautioned that they were at risk from the recession and financial market pressures. Impaired loans in Italy have risen to 11 percent of the total in 2011, from less than six percent before the crisis. Banks\' holdings of government bonds have also grown to seven percent of assets compared with a four-percent eurozone average. Foreign holdings of Italian bonds have meanwhile decreased from around 51 percent last year to an estimated 37 percent now, the report said. The IMF forecast that Italy\'s debt-to-GDP ratio will peak at about 126.4 percent in 2013 before declining to 119 percent in 2017 but warned that a slow recovery, high interest rates or policy slippage could push debt even higher.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf warns italy \vulnerable\ despite monti efforts Arab Today, arab today imf warns italy \vulnerable\ despite monti efforts

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday