IMF denies rumoured £500bn aid package for Italy and Spain

The International Monetary Fund (IMF) today denied reports it is planning a £500bn rescue package for Italy and Spain.

News of the talks emerged in Italy's La Stampa newspaper, following positive noises from a meeting between German and Dutch finance ministers indicating the IMF is set to be involved in a last ditch attempt to save the euro. It was also suggested the IMF may step in to support Spain by giving it access to  credit, rather than a rescue package, the BBC reports. An IMF spokesperson denied the talks, however, saying there were "no discussions with Italian authorities". Markets rallied in late trading, with the FTSE 100 up 2.22% by midday, the German Dax climbing 3.31% and the French C...