NUSA DUA, Indonesia (Reuters) – There is no immediate danger of Italy losing market access or being downgraded below investment grade because the Italian economy has underlying strengths, the head of the euro zone bailout fund ESM Klaus Regling said on Thursday.
In a panel discussion at an event at the International Monetary Fund meetings in Bali, Indonesia, Regling was responding to a question on what would happen if Italy lost market access like Greece did in 2010, triggering the sovereign debt crisis in Europe.
“There is no immediate danger for Italy to lose access to the markets, there is no immediate danger of it being downgraded below investment grade, they are still two notches above,” Regling said.
Reporting By Francesco Canepa and Jan Strupczewski; Editing by Shri Navaratnam
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