LONDON, June 20 (Reuters) - The cost of insuring Greek and Italian debt against default rose on Monday after ministers delayed granting emergency loans to Greece and rating agency Moody’s warned Italy’s credit rating could be cut.
A meeting of Eurogroup finance ministers on Sunday had been expected to agree to provide Greece the funding it needs to avoid a near-term default, but ministers postponed a final decision pending confirmation that Athens could muster political approval for tough new austerity measures. [ID:nLDE75I0FM] Moody’s placed Italy’s credit rating on review for downgrade late on Friday, citing concerns over an increased cost of borrowing stemming from the Greek crisis, as well as structural impediments to growth. [ID:nN17266057
Five-year credit default swaps (CDS) on Greek government debt rose 128 basis points to 2,025 bps, according to data monitor Markit. Equivalent Italian CDS hit 182 bps, up 11 bps on the day. (Reporting by William James)