IMF Not Discussing Bailing out Italy

Despite rumors to the contrary, the International Monetary Fund (

) has said that there are no talks underway with Italy for a financing program. According to

, the IMF has categorically denied that any such talks have taken place, while concerns continue to rise that Italy simply cannot bring its borrowing costs under control. The article states that, “The Washington-based lender isn't in discussions with Italian authorities on a program for IMF financing, a spokesperson for the fund said today in an e-mailed statement. Italy's La Stampa newspaper reported that the IMF may be preparing a loan of as much as 600 billion euros ($798 billion) to support Italian efforts to restore investor confidence.” In a note to clients, Marc Chandler at Brown Brothers Harriman & Co., chief currency strategist at the bank in New York, wrote that, “The IMF simply does not have the resources” on its own for such aid. It has been a rough month for Italy, with yields on its 10-year government bonds soaring to seven percent. It is looking for approximately 600 billion euros to buy it some breathing space. Hey, who doesn't have that kind of spare change lying around? An anonymous Japanese official told Business Week that Japan's government is not even sure that Italy wants an IMF bailout. One would imagine that Italy will look at the Greece situation and take whatever help is handed to it.