Euro currency.
The Euro symbol. Reuters

Italy is facing more financial turmoil as a deal that was signed to enter the euro in 1999 looks like it may now cost the debt-ridden country over $48 billion.

A recent report released by the Italian Treasury shows details of Italy’s debt transactions and exposure from the first half of 2012, including news that it had restructured eight of the derivatives contracts with foreign banks.

Italy has now sought to restructure its debt over a much longer period, but in some cases on more disadvantageous terms.

The problem came when Rome looked to meet deficit targets that were set by the EU before it could join the euro. According to the Financial Times, Rome was taking upfront payments in order to flatter its accounts.

In 1995 Italy had a budget deficit of 7.7 percent, but by 1998 it had miraculously reduced to 2.7 percent, by far the biggest drop among the first 11 countries that sought the be in the euro.