Italy is facing substantial losses on derivatives contracts it restructured at the height of the...

|By:, SA News Editor

Italy is facing substantial losses on derivatives contracts it restructured at the height of the eurozone crisis in H1 2012. Experts who have viewed a confidential government report - which leaves out crucial details - believe the contracts originate from when Italy was preparing to enter the euro in the late 1990s and calculate the losses at €8B. The suspicion is that the Treasury, whose Director-General at the time was Mario Draghi,  used the instruments to bring the government's budget deficit to below the 3% eurozone requirement.