There are some grim predictions for Italy’s economy from the International Monetary Fund. It sees growth of less than one percent this year and not much better next year. <br /><br /> The reason is Britain’s decision to leave the European Union which the IMF said has heightened financial market volatility and increased the risks for Italy.<br /><br /> Italy’s banks are a particular threat to the economic outlook, the IMF considers.<br /><br /> They are stuck with at least 360 billion euro of loans that are unlikley to be repaid and share prices for the sector have more than halved this year.<br /><br /> There are talks going on between the Italian government and the European Commission about state bail-outs for the worst hit banks.<br /><br /> But they are stalled on whether the banks’ bond and shareholders should face losses.<br />
