Ital­ian Banks’ costs climb on con­ta­gion worry

The Pak Banker - - Company& -

MI­LAN: Ital­ian banks are pay­ing the price of the nation's debt, the sec­ond-high­est in the euro zone, as the cri­sis threat­en­ing the re­gion's cur­rency erodes their per­ceived cred­it­wor­thi­ness and drives up bor­row­ing costs. The cost of in­sur­ing the debt of Uni­Credit SpA, Italy's biggest bank, posted the largest monthly jump in Novem­ber since Fe­bru­ary 2009, ac­cord­ing to data provider CMA. Uni­Credit's credit de­fault swaps this week im­plied a junk rat­ing to the com­pany's bonds for the first time, data from Moody's In­vestors Ser­vice's cap­i­tal mar­kets re­search group show. Swaps on In­tesa San­paolo SpA, the No. 2 bank, posted a record monthly in­crease.

Prime Min­is­ter Silvio Ber­lus­coni faces a con­fi­dence vote on Dec. 14, adding to in­vestor con­cern that Italy may strug­gle to fi­nance its 1.76 tril­lion eu­ros of debt should his govern­ment fall. -PB News

IS­LAM­ABAD: Fed­eral Min­is­ter for In­dus­tries and Pro­duc­tion Mir Hazar Khan Bi­jarani pre­sid­ing over a brief­ing/pre­sen­ta­tion on Sindh En­gi­neer­ing Limited. -App

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