The International Monetary Fund (IMF) is preparing a euro 600-billion ($794 billion) loan for Italy in case the country’s debt crisis worsens, La Stampa said.
The money would give Italy’s Prime Minister Mario Monti 12 to 18 months to implement his reforms without having to refinance the country’s existing debt, the Italian daily reported, without saying where it got the information.
Monti could draw on the money if his planned austerity measures fail to stop speculation on Italian debt, La Stampa said.
Italy would pay an interest rate of four per cent to five per cent on the loan, the newspaper said. The amount could vary from euro 400 billion to euro 600 billion, La Stampa said.