IMF denies reports of bailout fund for Italy

The International Monetary Fund has denied a report that it is preparing a bailout fund for Italy.

The International Monetary Fund has denied a report that it is preparing a bailout fund for Italy.

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The Italian daily La Stampa reported that the IMF was preparing a €600 billion ($794 billion) bailout fund for Italy, which is struggling to manage its enormous public debt of €1.9 trillion, which is equivalent to nearly 120% of the country's GDP.

An IMF spokesman said on Monday that there are "no discussions with Italian authorities on a program for IMF financing."

Italy has seen its borrowing costs on its debt rise steeply in recent weeks - with yields on benchmark 10-year bonds topping the 7% mark that has been the prelude to bailouts in other eurozone countries. Another auction of up to €750 million is planned later.