IMF denies €600bn Italy bailout fund plan

The International Monetary Fund has denied a report that it is preparing a bailout fund for Italy.

Italian daily newspaper La Stampa reported that the IMF was preparing a €600bn bailout fund for the country, which is struggling to manage its enormous public debt of €1.9 trillion, which is equivalent to nearly 120% of the country’s GDP.

An IMF spokesman said today that there are “no discussions with Italian authorities on a programme for IMF financing”.

Italy has seen its borrowing costs on its debt rise steeply in recent weeks - with yields on benchmark 10-year bonds topping the 7% mark that has been the prelude to bailouts in other eurozone countries.

Another auction of up to €750m is planned later.