that is very pessimistic government. Rams has 180 days of which...

that is very pessimistic government. Rams has 180 days of which under 20 have passed - its a little premature to be talking about failing to refinance...

Sure the LIBOR has increased 8 days in a row, and has touched higher than the 90 day bill rate, but this cant continue indefinately. Already central banks in europe and the fed have realised they need to pull back the LIBOR rate or commercial borrowers who use paper will face funding difficulties and since these are the strongest and highest rated borrowers (by and large), the economic fallout would be significant. The fed et al are not going to sit on their hands and let this happen. They have a number of options open - aside from lowering the cash rate - and will act in the next few weeks if the LIBOR doesnt start decreasing.