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But under a different interest rate scenario, the servicing costs become less manageable".
Even as they frantically cut back their debt mountains through austerity measures, the debt servicing costs are piling up.
This reduces servicing costs and, since machines are out of action less often, increases usage and revenues.
And while debt servicing costs are on average substantially lower than ten years ago, the housing market has remained strong.
But all these have negative effects, notably rising debt servicing costs and reduced popularity for the government, he said.
Though Italy has the euro zone's second-highest public debt to G.D.P., Rome boasts a primary budget surplus (the budget balance excluding debt servicing costs).
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The government's debt-servicing costs are too high?
It will slightly lower debt-servicing costs, but otherwise do little to revive household consumption.
Plus, with interest rates still on the floor, aggregate debt-servicing costs are comfortable.
Interest rates of 20-30% may seem high but so are recovery and loan-servicing costs in remote villages.
"Higher interest rates will increase debt-servicing costs and could increase default rates on existing loans," the bank warned.
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