ECB: high-debt countries sensitive to rate changes

ROME, NOV 17 – The debt situation of the Eurozone countries benefited from the recovery and favorable financing conditions. However, “if financing costs were to rise and economic growth were lower than expected, this could put the dynamics of sovereign debt on an unfavorable trajectory, especially in countries with higher debt, and contribute to a certain re-evaluation of sovereign risk by of the markets “. This is one of the risks highlighted by the ECB’s Financial Stability Review. According to the document, “even if these events, in particular the return of the interest-growth differential to the historical average, do not have a high probability, risk monitoring should continue”. (HANDLE).

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