By Francesco Canepa Reuters Saturday, April 22, 2017
The European Central Bank can supply cash to banks if Sunday's presidential vote in France roils markets but suppressing a rise in governments' borrowing costs would go beyond its remit, ECB policymaker Ignazio Visco said on Saturday.
Investors fear that a potential run-off between eurosceptic candidates Marine Le Pen and Jean-Luc Mélenchon would raise questions about France's future in the euro zone and the very survival of the euro.
This may in turn drive out bank deposits and push up borrowing costs, as measured by bond yields, for debt-laden governments such as Italy, as happened during the 2010-12 debt crisis.
... For the remainder of the report:
http://www.reuters.com/article/us-imf-g20-fra...e-idUSKBN17O0G1
