Italy's debt set to rise further-Moody's

Agency warns minibots could be 1st step to Italy quitting euro

(ANSA) - Rome, June 6 - Moody's said Thursday that Italy's public debt "will continue to increase in the coming years" adding that the government's target of a deficit-to-GDP ratio of around 2.1% this year "lacks credibility". The ratings agency forecast that Italy's deficit will be 2.6% this year and 2.75 in 2020.
    "We consider the 2020 budget law to be an important step to assess Italy's creditworthiness," it said.
    Moody's also criticised the possibility that Italy could issue so-called minibot State bonds to pay debts the Italian public sector has with private suppliers.
    A motion on the creation of minibots has been unanimously approved by the Lower House, although the opposition, centre-left Democratic Party has since withdrawn its support.
    Moody's said the issue of minibots would be "a first step towards the creation of a parallel currency and preparation for Italy's exit from the eurozone".
   

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