Thought October 14, 2020 / 06:04 am UTC
Financing The Italian Public Debt In 2020-21
The Italian public debt is set to rise to 158% of GDP in 2020 before easing a little to 155.6% in 2021. Our calculations show that the ECB will purchase the entirety of the additional debt issuance, and more. This helps explain the recent decline in Italian sovereign yields and should keep rating agencies happy in the next couple of years.