28th November 2011
With Italy still labouring under crisis level interest rates on its bonds of more than 7 per cent, world markets rose this morning on suggestions by Italian newspaper La Stampa that a euro 400 billion deal was on the cards.
But it only took a few hours before the reports were denied by the IMF itself as the BBC reports here.
Some experts are even pouring cold water on the idea that the IMF could help even if it wanted to.
The San Francisco Chronicle gives an American viewpoint , suggesting that the IMF does not have the resources nor the permission to leverage the resources to help Italy.
Marc Chandler at Brown Brothers Harriman & Co said: "The IMF simply does not have the resources. Schemes to leverage the IMF, which the proposal seems to assume, quickly run into political and technical difficulties. It is not clear who bears the cost of the risk. It is not clear that leveraging the IMF would be acceptable to a sufficient number of members."