The Italian Parliament has approved a possible €20 billion ($28.9 billion) bail-out plan for the country’s struggling banking sector.
As reported by the BBC, the Italian Treasury is set to inject fresh capital into it’s struggling banking sector and possibly save Banca Monte dei Paschi di Siena, the world’s oldest bank and sometimes regarded as Europe’s weakest, owing to its high level of bad loans.
Speaking to InvestorDaily in 2015, Perpetual head of investments Matthew Sherwood cautioned that Italy’s growing debt, which at the time was bigger than Greece’s was in 2010, was too high to fix.
“Italy can’t grow its way out of its debt problems; it can’t inflate its way out, that really only leaves default,” he said.
Mr Sherwood described Italy as Europe’s “problem child” and predicted at the time that debt would continue to grow.
Regardless, risks associated with the state of Italy’s banking sector are unlikely to have a large impact on Australian investors, according to AMP Capital chief economist Shane Oliver.
Read more:
Data akin to deregulation on disruption scale
BT Financial ‘rejects’ ASIC allegations
The global investment firm has opened a research office in Shanghai, as it looks to boost its coverage of China. ...
The Asia-Pacific region is tipped to become the fastest growing in terms of GDP growth in the world in the year ahead, according to analyst ...
In anticipation of the economic rebound, Martin Currie has signalled it will be looking towards Australian value stocks. ...