Exhibit 1
Recent developments update dated September 14, 2009
The information included in this section supplements the information about the Republic of Italy that is contained in Exhibit D to the Republic’s annual report on Form 18-K, for the fiscal year ended December 31, 2007. To the extent that the information included in this section differs from the information set forth in the annual report, you should rely on the information in this section.
The Italian Economy
Italy’s economy has deteriorated significantly as a result of the global economic and financial crisis that started in 2008. Based on ISTAT data, Italy’s real GDP decreased at a seasonally adjusted rate of 1.0 per cent in 2008, compared to a 1.6 per cent increase in 2007. In the first quarter of 2009, Italy recorded a 6.0 per cent decrease in real GDP compared to the first quarter of 2008, and a 2.7 per cent decrease compared to the last quarter of 2008. Italy’s real GDP decreased by 0.5 per cent in the second quarter of 2009 compared to the previous quarter and by 6 per cent compared to the same quarter of 2008. Italy’s seasonally adjusted average unemployment rate increased to 7.3 per cent in the first quarter of 2009, from 7.0 per cent recorded during the last quarter of 2008. Consumer prices, as measured by the harmonized EU consumer price index, decreased at an annual rate of 0.1 per cent during the twelve months ended July 31, 2009, compared to a 2.4 per cent increase during the twelve months ended December 31, 2008.
On April 6, 2009, an earthquake hit the province of L’Aquila, in the Abruzzo region, destroying buildings and infrastructure. The estimated cost for the reconstruction and re-launch of the economy in the areas affected by the earthquake is estimated to be approximately €2.5 billion for 2009.
Measures to Address the Financial and Economic Crisis
In addition to the measures taken by the Italian Government to address the banking crisis in 2008, in 2008 and 2009 the Government took several actions to contain the effects of the global and financial crisis, to support the economy and accelerate its recovery. The Government also injected significant liquidity into the system by accelerating payment of past debts and reducing the accrual of tax refunds.
In June 2009, the Government adopted a decree (Law Decree 78/2009) approving €11.5 billion of measures to be taken in the 2009-2012 period intended to support the economy. The decree is aimed at increasing Government revenue by decreasing tax avoidance and evasion. Government expenditure will be reduced by decreasing fraudulent claims for disability grants and by re-computing as of 2010 the ceiling on pharmaceutical expenditure. Deficit-reduction plans are also in place for the five regions that have recorded the highest healthcare budget deficits.
A significant number of measures contemplated by the decree are aimed at sustaining employment and the re-launch of business investment. These measures extend the use of social safety nets for example by encouraging companies with workers on Government funded long-term unemployment programs (cassa intergrazione) to re-employ those workers for training purposes on condition that the workers will be paid the same wage paid by the long-term unemployment program, of which 80 per cent would continue to be financed by the Government and the balance by the company. The measures also provide that the Government will pay early the bonus for self-employment, extend to 24 months the long-term unemployment program (cassa intergrazione) applicable to workers employed by businesses that cease to exist and increase for 2009 and 2010 wage supplements for solidarity contracts.
The decree’s provisions in support of businesses include: the exclusion from taxation on business income of 50 per cent of the value of investment in equipment and machinery made by June 20, 2010; more rapid depreciation of capital goods and new procedures for the write-down of non-performing loans and receivables for tax purposes; and the public administration’s more timely payment of amounts due to purveyors and suppliers and amounts due on contracts, in order to work off the amounts in arrears and to reduce those for the future. New legislation to reduce energy costs, particularly the cost of gas, is expected to provide benefits to businesses as well as to households.
5
Excluding the initiatives in favor of the banking sector and measures contemplated by Law Decree no. 78/2009 (adopted in June 2009), the Italian Government estimates that its economic and financial crisis-containment plan set aside resources totaling in aggregate approximately €27.3 billion for the 2008-2011 four-year period (€2.7 billion in 2008, €11.4 billion in 2009, €7.5 billion in 2010 and €5.8 billion in 2011), or 1.8 per cent of 2008 GDP.
Real GDP and Expenditures
The following table sets forth information relating to real GDP and expenditures for the periods indicated.
Real GDP and Expenditures(1)
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
(Euro in millions) | ||||||||||||||||||||
Real GDP | 1,236,671 | 1,244,782 | 1,270,126 | 1,289,988 | 1,276,578 | |||||||||||||||
Add: Imports of goods and services | 334,493 | 341,457 | 361,750 | 375,356 | 358,481 | |||||||||||||||
of which | ||||||||||||||||||||
Goods | 269,310 | 273,071 | 287,855 | 294,900 | 278,981 | |||||||||||||||
Services | 65,192 | 68,392 | 73,934 | 80,814 | 80,134 | |||||||||||||||
Total supply of goods and services | 1,570,405 | 1,585,131 | 1,630,192 | 1,663,642 | 1,633,337 | |||||||||||||||
Less: Exports of goods and services | 330,083 | 333,695 | 354,447 | 370,773 | 357,173 | |||||||||||||||
of which | ||||||||||||||||||||
Goods | 268,943 | 270,778 | 286,192 | 300,251 | 289,115 | |||||||||||||||
Services | 61,165 | 62,886 | 68,178 | 70,439 | 67,982 | |||||||||||||||
Total goods and services available for domestic expenditure(1) | 1,240,322 | 1,251,436 | 1,275,745 | 1,292,869 | 1,276,164 | |||||||||||||||
Domestic expenditure | ||||||||||||||||||||
Private sector consumption | 728,266 | 736,629 | 745,774 | 754,596 | 747,955 | |||||||||||||||
Public sector consumption | 248,281 | 253,023 | 254,328 | 256,926 | 258,587 | |||||||||||||||
Total domestic consumption | 976,649 | 989,781 | 1,000,194 | 1,011,607 | 1,006,657 | |||||||||||||||
Gross fixed investment | 260,444 | 262,559 | 270,257 | 275,732 | 267,571 | |||||||||||||||
Total domestic expenditures(1) | 1,237,093 | 1,252,340 | 1,270,451 | 1,287,339 | 1,274,228 | |||||||||||||||
(1) | In connection with ISTAT’s revisions to the national accounting system implemented in December 2005, ISTAT replaced its methodology for calculating real growth, which was based on a fixed base index, with a methodology linking real growth between consecutive time periods, or a chain-linked index. One of the effects of using chain indices is that component measures no longer aggregate to totals. Also, as a result of this change in methodology, all “real” revenue and expenditure figures included in this document differ from and are not comparable to data published in earlier documents filed by Italy with the United States Securities and Exchange Commission prior to the filing of the Republic’s annual report for the fiscal year ended December 31, 2005. |
Source: Annual Report of the Bank of Italy (May 2009) for the year ended December 31, 2008.
6
Selected Balance of Payments Indicators
The following table shows the balance of payments for the periods indicated.
Selected Balance of Payments Indicators
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
(Euro in millions) | ||||||||||||||||||||
Current Account | (13,077 | ) | (23,647 | ) | (38,346 | ) | (37,712 | ) | (53,597 | ) | ||||||||||
Capital Account | 1,700 | 1,347 | 1,826 | 2,258 | 825 | |||||||||||||||
Financial Account | 9,024 | 20,898 | 25,404 | 26,212 | 49,553 | |||||||||||||||
Errors and omissions | 2,353 | 1,402 | 11,116 | 9,242 | 3,219 |
Source: Annual Report of the Bank of Italy (May 2009) for the year ended December 31, 2008.
The deterioration of Italy’s current account in 2008 is mainly attributable to an income deficit of €29.5 billion, compared to a deficit of €19.6 billion recorded in 2007, the negative trend of Italy’s visible trade, which recorded a deficit of €0.7 billion in 2008 compared to a surplus of €3.2 billion in 2007, and the increase in the current transfers deficit from €14.2 billion in 2007 to €16.0 billion in 2008.
The decrease in Italy’s capital account recorded in 2008 was mainly due to the decrease in current transfers surplus from €2.3 billion in 2007 to €0.8 billion in 2008.
The increase in financial account surplus was mainly attributable to a substantial increase in portfolio investment surplus, from €18.1 billion recorded in 2007 to €118.5 billion in 2008 and a reduction of direct investment deficit from €37.0 billion recorded in 2007 to €18.3 billion in 2008, partially offset by a deficit of €51.8 billion in other investments recorded in 2008, from a €46.2 billion surplus recorded in 2007. The increase recorded in portfolio investment surplus was driven by the global financial crisis, which resulted in a €90.0 billion reduction in the value of non-Italian equity securities held by Italian investors in 2008, compared to an €11.0 billion reduction in 2007, and an increase of non-residents’ investment in Italian debt securities, from €30.1 billion in 2007 to €61.4 billion in 2008.
7
Public Finance
The following table sets forth general government revenues and expenditures and certain other key public finance measures for the five years ended December 31, 2008. The table does not include revenues from privatizations, which are deposited into a special fund for the repayment of Treasury outstanding securities and cannot be used to finance current expenditures. While proceeds from privatizations do not affect the primary balance, they contribute to a decrease in the public debt and consequently the ratio of public debt-to-GDP.
General Government Revenues and Expenditures
2004(1) | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
(Euro in millions) | ||||||||||||||||||||
Expenditures | ||||||||||||||||||||
Current expenditures | 612,820 | 634,731 | 655,758 | 684,905 | 715,896 | |||||||||||||||
of which | ||||||||||||||||||||
Total consumption | 262,854 | 275,365 | 282,223 | 286,931 | 299,602 | |||||||||||||||
of which | ||||||||||||||||||||
Wages and salaries | 149,866 | 156,542 | 163,220 | 164,071 | 171,160 | |||||||||||||||
Cost of goods and services | 112,988 | 118,823 | 119,003 | 122,860 | 128,442 | |||||||||||||||
Interest expense | 65,769 | 66,065 | 68,578 | 77,215 | 80,891 | |||||||||||||||
Social services | 234,701 | 242,345 | 252,176 | 264,483 | 278,008 | |||||||||||||||
Other current expenditures | 49,496 | 50,956 | 52,781 | 56,276 | 57,395 | |||||||||||||||
of which | ||||||||||||||||||||
Production grants | 14,328 | 12,910 | 13,070 | 14,913 | 14,237 | |||||||||||||||
Capital expenditures | 54,979 | 58,668 | 74,545 | 62,890 | 59,027 | |||||||||||||||
of which | ||||||||||||||||||||
Investments(2) | 33,426 | 33,711 | 34,690 | 35,969 | 34,973 | |||||||||||||||
Investment grants | 20,071 | 22,279 | 22,601 | 25,045 | 23,077 | |||||||||||||||
Other capital expenditures | 1,482 | 2,678 | 17,254 | 1,876 | 977 | |||||||||||||||
Total Expenditures | 667,799 | 693,399 | 730,303 | 747,795 | 774,923 | |||||||||||||||
as a percentage of GDP | 48.0 | % | 48.5 | % | 49.2 | % | 48.4 | % | 49.3 | % | ||||||||||
Revenues | ||||||||||||||||||||
Current revenues | 607,047 | 625,682 | 676,608 | 720,017 | 728,383 | |||||||||||||||
of which | ||||||||||||||||||||
Tax revenues | 380,833 | 392,551 | 434,180 | 460,385 | 456,946 | |||||||||||||||
of which | ||||||||||||||||||||
Direct taxes | 185,378 | 189,815 | 213,867 | 233,229 | 241,427 | |||||||||||||||
Indirect taxes | 195,455 | 202,736 | 220,313 | 227,156 | 215,519 | |||||||||||||||
Social security contributions | 175,968 | 183,445 | 189,691 | 205,299 | 214,718 | |||||||||||||||
Revenues from capital | 7,611 | 8,045 | 9,694 | 9,675 | 9,390 | |||||||||||||||
Other current revenues | 42,635 | 41,641 | 43,043 | 44,658 | 47,329 | |||||||||||||||
Capital revenues | 12,180 | 6,285 | 4,383 | 4,553 | 3,561 | |||||||||||||||
Total revenues | 619,227 | 631,967 | 680,991 | 724,570 | 731,944 | |||||||||||||||
as a percentage of GDP | 44.5 | % | 44.2 | % | 45.8 | % | 46.9 | % | 46.6 | % | ||||||||||
Current surplus/(deficit) | (5,773 | ) | (9,049 | ) | 20,850 | 35,112 | 12,487 | |||||||||||||
as a percentage of GDP | (0.4 | )% | (0.6 | )% | 1.4 | % | 2.3 | % | 0.8 | % | ||||||||||
Net borrowing | 48,572 | 61,432 | 49,312 | 23,225 | 42,979 | |||||||||||||||
as a percentage of GDP | 3.5 | % | 4.3 | % | 3.3 | % | 1.5 | % | 2.7 | % | ||||||||||
Primary balance | 17,197 | 4,633 | 19,266 | 53,990 | 37,912 | |||||||||||||||
as a percentage of GDP | 1.2 | % | 0.3 | % | 1.3 | % | 3.5 | % | 2.4 | % | ||||||||||
GDP (nominal value) | 1,391,530 | 1,429,479 | 1,485,377 | 1,544,915 | 1,572,243 |
8
(1) | Eurostat published in July 2002 a decision relating to the methods of accounting for securitizations. Pursuant to the Eurostat decision, Italy is required to account for receipts, aggregating approximately €6.7 billion, from certain real estate and state lottery proceeds securitizations transactions, which took place in 2001, in the three-year period 2002-2004 and not in 2001. The general government revenues and expenditures figures presented in the table above take into account the effects of the Eurostat decision. | |
(2) | Includes revenues from the disposal of state-owned real estate (deducted from capital expenditures) for the year 2004 (€4.5 billion), 2005 (3.2 billion), 2006 (€1.7 billion), 2007 (€1.4 billion) and 2008 (€1.3 billion). |
Source: Annual Report of the Bank of Italy (May 2009) for the year ended December 31, 2008.
General government expenditures and revenues have increased in each of the last five years. General government expenditures rose by 3.6 per cent in 2008, compared to 2.4 per cent in 2007. The increase in total expenditures was mainly driven by the increase in expense for social services, wages and salaries and cost of goods and services, the effect of which was offset partially by a decrease in capital expenditures. Social services expense increased in 2008 as a result of a 4.2 per cent increase in pension expenditure, compared to a 4.0 per cent increase in 2007. Pension expenditure in Italy represented 15.6 per cent of GDP in 2008 compared to 15.2 per cent in 2007. The increase in social services expense also resulted from a 12.1 per cent increase in expenditures for other social services (such as disability and unemployment benefits) compared to 12.7 per cent in 2007. Wages and salaries increased in 2008 principally as a result of the renegotiation and subsequent renewal of collective bargaining agreements for public health care employees and non-management employees of Regional governments and other local entities.
General government revenue increased by 1.0 per cent in 2008 compared to 6.4 per cent in 2007. The slower growth in government revenue during 2008 is mainly attributable to a 5.4 per cent decrease in revenue from indirect taxes compared to a 4.6 per cent increase in 2007, due to reductions in indirect taxes introduced in 2006 and 2007. The slower growth in government revenue is also due to the growth in direct tax revenue, which slowed down to 3.5 per cent in 2008 from 9.1 per cent in 2007, principally due to slower growth in taxable revenue generated by taxpayers due to the global economic and financial crisis that started in 2008. Similarly and for the same reasons, growth in social security contributions decreased to 4.6 per cent in 2008 from 8.2 per cent increase in 2007.
In July 2009, the Government finalized and presented to Parliament its 2010-2013 Program Document. The following table shows Italy’s principal public finance targets for the years indicated, as well as the gross domestic product assumptions underlying the Program Document. The inflation rate and unemployment rate assumptions are 0.9 per cent and 8.8 per cent, respectively.
2010-2013 Program Document Objectives
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | |||||||||||||||||||
GDP (% real growth rate) | (1.0 | ) | (5.2 | ) | 0.5 | 2.0 | 2.0 | 2.0 | ||||||||||||||||
Net borrowing, as a percentage of GDP | 2.7 | 5.3 | 5.0 | 4.0 | 2.9 | 2.4 | ||||||||||||||||||
Primary balance, as a percentage of GDP | 2.4 | (0.4 | ) | 0.2 | 1.5 | 2.9 | 3.5 | |||||||||||||||||
Public debt, as a percentage of GDP | 105.7 | 115.3 | 118.2 | 118.0 | 116.5 | 114.1 | ||||||||||||||||||
Structural net borrowing (budget surplus), as a percentage of GDP | 3.4 | 3.1 | 2.8 | 2.5 | 2.1 | 2.2 |
Source: 2010-2013 Program Document.
The objectives and forecasts set forth in the Program Document are based on assumptions relating to future economic developments, including international economic trends, and may therefore not be realized.
9
Composition of Tax Revenues
The following table sets forth the composition of tax revenues for each of the five fiscal years ended December 31, 2008 based on State sector (cash basis) accounting criteria. Direct and indirect tax revenues reflected in this table do not correspond to those shown in the “General Government Revenues and Expenditures” table set forth above, which is prepared on general Government (accrual basis) ESA95 accounting criteria as explained in further detail in footnote 1 to the table.
Composition of Tax Revenues(1)
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
(Millions of euro) | ||||||||||||||||||||
Direct taxes | ||||||||||||||||||||
Personal income tax | 127,689 | 132,663 | 142,062 | 150,130 | 158,262 | |||||||||||||||
Corporate income tax | 28,073 | 33,699 | 39,475 | 50,520 | 45,812 | |||||||||||||||
Investment income tax | 7,914 | 8,882 | 12,193 | 13,696 | 14,254 | |||||||||||||||
Other(2) | 18,640 | 4,368 | 9,655 | 4,818 | 7,829 | |||||||||||||||
Total direct taxes | 182,316 | 179,612 | 203,385 | 219,164 | 226,157 | |||||||||||||||
Indirect taxes | ||||||||||||||||||||
VAT | 100,051 | 105,008 | 114,166 | 119,239 | 117,444 | |||||||||||||||
Other transaction-based taxes | 18,176 | 18,054 | 20,395 | 17,305 | 21,399 | |||||||||||||||
Production taxes | 24,906 | 26,615 | 26,690 | 25,645 | 24,085 | |||||||||||||||
Tax on State monopolies | 8,502 | 8,511 | 9,349 | 9,785 | 9,904 | |||||||||||||||
National Lottery | 14,658 | 12,364 | 10,191 | 11,800 | 11,346 | |||||||||||||||
Others | 3,167 | 2,144 | 2,251 | 2,041 | 2,068 | |||||||||||||||
Total indirect taxes | 169,460 | 172,696 | 183,042 | 185,815 | 186,246 | |||||||||||||||
Total taxes | 351,776 | 352,308 | 386,427 | 404,979 | 412,403 | |||||||||||||||
(1) | The data presented in this table does not correspond to the general Government direct and indirect tax revenue figures contained in the preceding table entitled “General Government Revenues and Expenditures,” primarily because this table is prepared on the basis of State sector (cash basis) accounting criteria while the “General Government Revenues and Expenditures” table is prepared on an accrual basis in accordance with ESA95. Generally, State sector accounting does not include indirect taxes levied by, and certain amounts allocable to, regional and other local governments and entities. However, because this table is prepared on a cash basis, it reflects tax receipts of entities that are excluded from State sector accounting (such as local government entities) that are collected on their behalf by the State (and subsequently transferred by the State to those entities). | |
(2) | The taxes classified as “other” are non-recurring and, accordingly, this item is highly variable. |
Source: Annual Report of the Bank of Italy (May 2009) for the year ended December 31, 2008.
In 2008, direct tax receipts increased by 3.2 per cent compared to 2007, mainly as a result of a rise in personal income tax and other taxes, partially off-set by a reduction in corporate income tax. Indirect taxes include VAT, excise duties, stamp duties and other taxes levied on expenditures. During 2008, indirect tax receipts (accounted for on a cash basis) recorded a slight increase, approximately 0.2 per cent, mainly as a result of an increase in other transaction based taxes, partially offset by a decrease in receipts from VAT and production taxes. On an accrual basis, instead, revenue from indirect taxes decreased as described under “Public Finance — General Government Revenue and Expenditures”.
10
Public Debt — Total Treasury Issues
The following table shows the total of debt securities issued by the Treasury and outstanding as of the dates indicated. Total Treasury issues differ from Italy’s total public debt as the former do not include liabilities to holders of postal savings accounts, debt incurred by Ferrovie dello Stato S.p.A., ANAS (Azienda Nazionale per le Strade) and Infrastrutture S.p.A. (ISPA) and debt incurred by other state sector entities and other general government entities, other general government entities and other liabilities reclassified as general Government debt pursuant to Eurostat rulings.
December 31, 2008 | June 30, 2009 | |||||||
(Millions of euro) | ||||||||
Short term bonds (BOT) | 147,753 | 175,050 | ||||||
Medium and long term bonds (initially issued in Italy) | 1,137,870 | 1,189,738 | ||||||
External bonds (initially issued outside Italy)(1) | 60,342 | 61,394 | ||||||
Total Treasury issues | 1,345,964 | 1,426,182 | ||||||
(1) | Italy often enters into currency swap agreements in the ordinary course of the management of its debt. The total amount of external bonds shown above takes into account the effect of these arrangements and is not directly comparable to the total amounts of external bonds indicated in the table “External Bonds of the Treasury as of June 30, 2009” below, which do not take into account: (i) the effect of currency swaps and (ii) the amount of debt outstanding under Italy’s Commercial Paper Program. |
Source: Ministry of Economy and Finance
The following table shows the external bonds of the Treasury issued and outstanding as of June 30, 2009.
External Bonds of the Treasury as of June 30, 2009
Initial Public | Original | Principal | ||||||||||||||||||||
Offering | Principal | Amount | Equivalent | |||||||||||||||||||
Title | Interest Rate (%) | Price | Date of Issue | Maturity Date | Amount | Outstanding | in Euro | |||||||||||||||
United States Dollar(1) | ||||||||||||||||||||||
$3,500,000,000 | 6.875% | 98.725 | % | September 27, 1993 | September 27, 2023 | 3,500,000,000 | 3,500,000,000 | 2,476,298,288 | ||||||||||||||
$1,500,000,000 | 6.025% - 6.88% | 100.00 | % | March 5, 1996 | March 5, 2004/12 | 1,500,000,000 | 1,500,000,000 | 1,061,270,695 | ||||||||||||||
$750,000,000 | 5.81% - 6,70% | 100.00 | % | March 5, 1996 | March 5, 2002/10 | 750,000,000 | 750,000,000 | 530,635,347 | ||||||||||||||
$1,500,000,000 | 5.97% - 6.25% | 100.00 | % | December 20, 1996 | December 20, 2004/12 | 1,500,000,000 | 1,500,000,000 | 1,061,270,695 | ||||||||||||||
$2,000,000,000 | 6.00% | 99.274 | % | February 22, 2001 | February 22, 2011 | 2,000,000,000 | 2,000,000,000 | 1,415,027,593 | ||||||||||||||
$2,000,000,000 | 5.625% | 99.893 | % | March 1, 2002 | June 15, 2012 | 2,000,000,000 | 2,000,000,000 | 1,415,027,593 | ||||||||||||||
$1,000,000,000 | 5.625% | 99.392 | % | May 8, 2002 | June 15, 2012 | 1,000,000,000 | 1,000,000,000 | 707,513,797 | ||||||||||||||
$2,000,000,000 | 5.375% | 98.436 | % | February 27, 2003 | June 15, 2033 | 2,000,000,000 | 2,000,000,000 | 1,415,027,593 | ||||||||||||||
$2,000,000,000 | 4.375% | 99.694 | % | February 27, 2003 | June 15, 2013 | 2,000,000,000 | 2,000,000,000 | 1,415,027,593 | ||||||||||||||
$100,000,000 | 4.17% | 100.00 | % | November 14, 2003 | November 15, 2010 | 100,000,000 | 100,000,000 | 70,751,380 | ||||||||||||||
$100,000,000 | 4.06% | 100.00 | % | December 9, 2003 | December 9, 2010 | 100,000,000 | 100,000,000 | 70,751,380 | ||||||||||||||
$4,000,000,000 | 4.50% | 99.411 | % | January 21, 2005 | January 21, 2015 | 4,000,000,000 | 4,000,000,000 | 2,830,055,186 | ||||||||||||||
$2,000,000,000 | 4.75% | 99.34 | % | January 25, 2006 | January 25, 2016 | 2,000,000,000 | 2,000,000,000 | 1,415,027,593 | ||||||||||||||
$3,000,000,000 | 5.25% | 99.85 | % | September 20, 2006 | September 20, 2016 | 3,000,000,000 | 3,000,000,000 | 2,122,541,390 | ||||||||||||||
$2,000,000,000 | 5.375% | 99.37 | % | June 12, 2007 | June 12, 2017 | 2,000,000,000 | 2,000,000,000 | 1,415,027,593 | ||||||||||||||
$2,500,000,000 | 3.500% | 99.69 | % | June 4, 2008 | July 15, 2011 | 2,500,000,000 | 2,500,000,000 | 1,768,784,491 | ||||||||||||||
29,950,000,000 | 21,190,038,206 | |||||||||||||||||||||
Euro(2) | ||||||||||||||||||||||
€2,500,000,000 | 9.25% | 98.160 | % | March 7, 1991 | March 7, 2011 | 2,500,000,000 | 2,500,000,000 | 2,500,000,000 | ||||||||||||||
€1,022,583,762 | 3 mth libor + 0.0625% | 99.89 | % | December 11, 1995 | December 20, 2002/10 | 1,022,583,762 | 1,022,583,762 | 1,022,583,762 | ||||||||||||||
€567,225,000 | 6.13% | 100.790 | % | May 29, 1997 | May 29, 2012 | 567,225,000 | 567,225,000 | 567,225,000 | ||||||||||||||
€60,000,000 | 3 mth libor - 16 b.p. | 99.610 | % | October 8, 1998 | October 8, 2018 | 60,000,000 | 60,000,000 | 60,000,000 | ||||||||||||||
€300,000,000 | Index linked | 101.425 | % | October 15, 1998 | October 15, 2018 | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||||||||
€1,000,000,000 | 4.000% | 99.95 | % | May 6, 1999 | May 6, 2019 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||||||||
€1,000,000,000 | frn 30Y | 101.60 | % | June 28, 1999 | June 28, 2029 | 1,000,000,000 | 905,000,000 | 905,000,000 | ||||||||||||||
€1,000,000,000 | t.swap 30 - 0.91% | 100.75 | % | August 30, 1999 | August 30, 2019 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||||||||
€150,000,000 | Zero Coupon | 100.00 | % | February 20, 2001 | February 20, 2031 | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||||||
€3,000,000,000 | 5.75% | 100.04 | % | July 25, 2001 | July 25, 2016 | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 |
11
Initial Public | Original | Principal | ||||||||||||||||||||
Offering | Principal | Amount | Equivalent | |||||||||||||||||||
Title | Interest Rate (%) | Price | Date of Issue | Maturity Date | Amount | Outstanding | in Euro | |||||||||||||||
€400,000,000 | 3 mth libor - 0.06% | 100.00 | % | January 22, 2002 | January 22, 2012 | 400,000,000 | 400,000,000 | 400,000,000 | ||||||||||||||
€150,000,000 | 84.5% cms 10Y | 100.00 | % | April 26, 2004 | April 26, 2019 | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||||||
€300,000,000 | 12 mth eubor + 0.10% | 100.00 | % | May 31, 2005 | May 31, 2035 | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||||||||
€720,000,000 | 3.546% until 2009 | 100.00 | % | June 2, 2005 | June 2, 2029 | 720,000,000 | 720,000,000 | 720,000,000 | ||||||||||||||
€395,000,000 | 3.523% until 2010 | 100.00 | % | June 2, 2005 | June 2, 2030 | 395,000,000 | 395,000,000 | 395,000,000 | ||||||||||||||
€200,000,000 | 85% * 10y Eurswap | 100.00 | % | June 8, 2005 | June 8, 2020 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||||||
€2,500,000,000 | 85% * 10y swap rate | 100.00 | % | June 15, 2005 | June 15, 2020 | 2,500,000,000 | 2,500,000,000 | 2,500,000,000 | ||||||||||||||
€300,000,000 | 85.5% * 10y swap rate | 100.00 | % | June 28, 2005 | June 28, 2021 | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||||||||
€200,000,000 | 6 mth Eubor + 1.5% (max 10x(cms10-cms2) | 100.00 | % | November 9, 2005 | November 9, 2025 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||||||||
€900,000,000 | 6 mth Eubor + 0.04% | 99.38357 | % | March 17, 2006 | March 17, 2021 | 900,000,000 | 900,000,000 | 900,000,000 | ||||||||||||||
€1,000,000,000 | 6 mth Eubor + 0.60% | 99.85 | % | March 22, 2006 | March 22, 2018 | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||||||||||
€192,000,000 | Zero Coupon | 100.00 | % | March 28, 2006 | March 28, 2036 | 192,000,000 | 192,000,000 | 192,000,000 | ||||||||||||||
€300,000,000 | 6 mth Eubor + 0.075% | 100.00 | % | March 30, 2006 | March 30, 2026 | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||||||||
€215,000,000 | 5.07%/ 10y cms | 100.00 | % | May 11, 2006 | May 11, 2026 | 215,000,000 | 215,000,000 | 215,000,000 | ||||||||||||||
€1,000,000,000 | 1.85% linked to EU inflation index | 99.796065 | % | January 5, 2007 | September 15, 2057 | 1,000,000,000 | 1,055,000,000 | 1,055,000,000 | ||||||||||||||
€250,000,000 | 2.00% linked to EU inflation index | 99.02385 | % | March 30, 2007 | September 15, 2062 | 250,000,000 | 264,000,000 | 264,000,000 | ||||||||||||||
€160,000,000 | 4.49% | 99.86 | % | April 5, 2007 | April 5, 2027 | 160,000,000 | 160,000,000 | 160,000,000 | ||||||||||||||
€500,000,000 | 2.20% linked to EU inflation index | 98.862525 | % | January 23, 2008 | September 15, 2058 | 500,000,000 | 518,000,000 | 518,000,000 | ||||||||||||||
€258,000,000 | 5.26% | 99.79 | % | March 16, 2009 | March 16, 2026 | € | 258,000,000 | € | 258,000,000 | € | 258,000,000 | |||||||||||
€300,000,000 | 3.00% | 99.733 | % | May 29, 2009 | November 29, 2013 | 300,000,000 | 300,000,000 | 300,000,000 | ||||||||||||||
20,831,808,762 | 20,831,808,762 | |||||||||||||||||||||
Swiss Francs(3) | ||||||||||||||||||||||
ChF 1,500,000,000 | 3.125% | 99.825 | % | January 15, 1999 | July 15, 2010 | 1,500,000,000 | 1,500,000,000 | 982,640,026 | ||||||||||||||
ChF 1,000,000,000 | 2.75% | 100.625 | % | July 1, 2004 | July 1, 2011 | 1,000,000,000 | 1,000,000,000 | 655,093,351 | ||||||||||||||
ChF 2,000,000,000 | 2.50% | 100.09 | % | February 2, 2005 | March 2, 2015 | 2,000,000,000 | 2,000,000,000 | 1,310,186,702 | ||||||||||||||
ChF 1,000,000,000 | 2.50% | 99.336 | % | January 30, 2006 | January 30, 2018 | 1,000,000,000 | 1,000,000,000 | 655,093,351 | ||||||||||||||
5,500,000,000 | 3,603,013,429 | |||||||||||||||||||||
Pounds Sterling(4) | ||||||||||||||||||||||
£400,000,000 | 10.50% | 100.875 | % | April 28, 1989 | April 30, 2014 | 400,000,000 | 400,000,000 | 469,428,471 | ||||||||||||||
£1,500,000,000 | 6.00% | 98.565 | % | August 4, 1998 | August 4, 2028 | 1,500,000,000 | 1,500,000,000 | 1,760,356,766 | ||||||||||||||
£250,000,000 | 5.25% | 99.476 | % | July 29, 2004 | December 7, 2034 | 250,000,000 | 250,000,000 | 293,392,794 | ||||||||||||||
2,150,000,000 | 2,523,178,031 | |||||||||||||||||||||
Norwegian Kroners(5) | �� | |||||||||||||||||||||
NOK 2,000,000,000 | 6.15% | 100.00 | % | September 25, 2002 | September 25, 2012 | 2,000,000,000 | 2,000,000,000 | 221,778,665 | ||||||||||||||
NOK 2,000,000,000 | 4.34% | 100.00 | % | June 23, 2003 | June 23, 2015 | 2,000,000,000 | 2,000,000,000 | 221,778,665 | ||||||||||||||
4,000,000,000 | 443,557,330 | |||||||||||||||||||||
Japanese Yen(6) | ||||||||||||||||||||||
¥125,000,000,000 | 5.50% | 100.00 | % | December 15, 1994 | December 15, 2014 | 125,000,000,000 | 125,000,000,000 | 922,441,148 | ||||||||||||||
¥125,000,000,000 | 4.50% | 100.00 | % | June 8, 1995 | June 8, 2015 | 125,000,000,000 | 125,000,000,000 | 922,441,148 | ||||||||||||||
¥100,000,000,000 | 3.70% | 100.00 | % | November 14, 1996 | November 14, 2016 | 100,000,000,000 | 100,000,000,000 | 737,952,919 | ||||||||||||||
¥100,000,000,000 | 3.450% | 99.80 | % | March 24, 1997 | March 24, 2017 | 100,000,000,000 | 100,000,000,000 | 737,952,919 | ||||||||||||||
¥100,000,000,000 | 1.80% | 99.882 | % | February 23, 2000 | February 23, 2010 | 100,000,000,000 | 100,000,000,000 | 737,952,919 | ||||||||||||||
¥25,000,000,000 | 2.87% | 100.00 | % | May 18, 2006 | May 18, 2036 | 25,000,000,000 | 25,000,000,000 | 184,488,230 | ||||||||||||||
¥50,000,000,000 | 3 month JPY libor | 100.00 | % | April 24, 2008 | April 24, 2018 | 50,000,000,000 | 50,000,000,000 | 368,976,459 | ||||||||||||||
625,000,000,000 | 4,612,205,741 | |||||||||||||||||||||
Czech Koruna(7) | ||||||||||||||||||||||
CZK 2,490,000,000 | 4.36% | 100.00 | % | October 3, 2007 | October 3, 2017 | 2,490,000,000 | 2,490,000,000 | 96,205,857 | ||||||||||||||
CZK 2,490,000,000 | 4.40% | 100.00 | % | October 3, 2007 | October 3, 2019 | 2,490,000,000 | 2,490,000,000 | 96,205,857 | ||||||||||||||
CZK 2,490,000,000 | 4.41% | 100.00 | % | October 3, 2007 | October 3, 2019 | 2,490,000,000 | 2,490,000,000 | 96,205,857 | ||||||||||||||
7,470,000,000 | 288,617,572 | |||||||||||||||||||||
TOTAL OUTSTANDING | 53,492,419,071 | (8) | ||||||||||||||||||||
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(1) | U.S. dollar amounts have been converted into euro at $1.4134/€1.00, the exchange rate prevailing at June 30, 2009. | |
(2) | External debt denominated in currencies of countries that have adopted the euro have been converted into euro at the fixed rate at which those currencies were converted into euro upon their issuing countries becoming members of the European Monetary Union. | |
(3) | Swiss Franc amounts have been converted into euro at ChF1.5265/€1.00, the exchange rate prevailing at June 30, 2009. | |
(4) | Pounds Sterling amounts have been converted into euro at £0.8521/€1.00, the exchange rate prevailing at June 30, 2009. | |
(5) | Norwegian Kroner amounts have been converted into euro at NOK9.018/€1.00, the exchange rate prevailing at June 30, 2009. | |
(6) | Japanese Yen amounts have been converted into euro at ¥135.51/€1.00, the exchange rate prevailing at June 30, 2009. | |
(7) | Czech Koruna amounts have been converted into euro at CZK25.882/€1.00, the exchange rate prevailing at June 30, 2009. | |
(8) | The amount of external bonds shown above does not take into account (i) approximately €3,480 million outstanding under Italy’s Commercial Paper Program and (ii) the effect of currency swaps that Italy often enters into in the ordinary course of the management of its debt. The following table summarizes the effects on the Treasury’s external bonds after giving effect to currency swaps. |
As of June 30, 2009 | ||||||||
Currency | Before Swap | After Swap | ||||||
US Dollars | 39.61 | % | 2.75 | % | ||||
Euro | 38.94 | % | 97.25 | % | ||||
Swiss Francs | 6.74 | % | — | |||||
Pounds Sterling | 4.72 | % | — | |||||
Norwegian Kroner | 0.83 | % | — | |||||
Japanese Yen | 8.62 | % | — | |||||
Czech Koruna | 0.54 | % | — | |||||
Total External Bonds (in millions of Euro) | 53,492.4 | 57,914.9 | ||||||
Source: Ministry of Economy and Finance.
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