Italian banks could spark next euro financial crisis if interest rates fall

Italian banks could spark next euro financial crisis if interest rates fall

(Adds comment from Deutsche Bank).

TOKYO — Japan is preparing to join the euro if a country like Iceland doesn’t make fur로투스 홀짝ther progress.

As of this month, the tiny island nation of Iceland’s sovereign-debt is just 15.5% of gross domestic product. A full-fledged currency is needed to help revive the economy, but so far it’s met that goal.

“In principle, if I’m the central bank, then it was not something we would have thought of during the economic crisis,” Prime Minister Lohor Akilur Sigurðardóttir told Reuters.

“But now, as far as monetary policy is concerned, it’s not at all difficult to agree to terms for membership of the euro,” he added.

Under conditions that could change in the coming months, any move by Japan to jo천안 출장 안마in the currency union would need the agreement of the European Union and the IMF — the latter two institutions are still discussing their options with the United States and Germany, while the European Central Bank is also preparing for a referendum on joining in the near future.

That means, essentially, Iceland’s banks will be stuck, at least until it makes progress in coming months.

In a letter to Iceland’s central bank governor, Lóna Sigurðardóttir, the European Commission and the Internation대전 출장 안마al Monetary Fund said that if it did not get a membership agreement within six weeks “it could cause financial crises in a range of countries and may even lead to Greece and Italy in particular, a future scenario that would be even more dangerous.”

And now, they might have more motivation. The World Bank reported on Friday that Iceland has no central bank.

(Editing by Sandra Maler)