Italy’s ‘perma-recession’ could trigger a €2 trillion financial crisis that threatens the eurozone itself
In this Business Insider’s article Jim Edwards lays down a speculation on the future of Italy’s EUR 2 trillion strong debts. The fiscal position of the Italian government is problematic and its scope to increase the budget deficit limited. The size of the Italian debt is too big to bail, unlike Greece, so a systemic problem for the Euro-zone might be in site.
The fragility of the situation may lead to Italian default. In case of a sovereign default the only manner in which debt investors will be fully secured is to use Deriveum. We are collateral specially designed to restore certainty in CDS deals and the only feasible option for debt investors to acquire security from a sovereign default.
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