Bloomberg News

Italy’s Debt Costs May Rise by EU30 Billion, Confindustria Says

December 01, 2011

Dec. 1 (Bloomberg) -- Italy’s debt servicing costs will rise by almost 30 billion euros in the next two years and corporate borrowing will slow if 10-year bond yields remain near 7 percent, Confindustria, the country’s employers’s lobby said.

Italy would pay 11.9 billion euros more to fund its debt next year and 17.9 billion euros more in 2013, Confindustria said in an e-mailed report. Debt servicing costs will rise to 5.1 percent of gross domestic product next year from 4.2 percent this year and jump to 5.6 percent in 2013, the report said.

The average yield on bank bonds will clime to 5.9 percent in 2012 and to 6.5 percent in 2013.

“This will make it prohibitive to fund investment projects or purchases of durable goods,” the report said.

To contact the reporter on this story: Lorenzo Totaro in Rome at

To contact the editor responsible for this story: Andrew Davis at

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