Italy Republic Of 18-K/A Annual report (foreign governments) (amended)

Exhibit 1

Recent Developments update dated September 7, 2010

     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, 2008. 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

     In 2008 and 2009, Italy’s economy deteriorated significantly as a result of the global economic and financial crisis that started in 2008. Italy’s economy began to show signs of recovery in the first quarter of 2010, when Italy recorded a 0.4 per cent increase in real GDP compared to the fourth quarter of 2009, and a 0.6 per cent increase compared to the first quarter of 2009, based on ISTAT data. Italy’s seasonally adjusted average unemployment rate increased to 8.4 per cent in the first quarter of 2010, from 8.3 per cent recorded during the fourth quarter of 2009. Consumer prices, as measured by the harmonized EU consumer price index, increased at an annual rate of 1.7 per cent during the twelve months ended July 31, 2010.

Measures to Address the 2007-2010 Financial and Economic Crisis

     In addition to the measures taken by the Italian Government to address the banking crisis in 2008 and 2009 the Government took further action in 2010 to contain the effects of the global and financial crisis, to support the economy and accelerate its recovery.

     In May 2010, the Government adopted a decree approving €24.9 billion of measures to be taken in the 2011-2013 period. The decree is aimed at reducing net borrowing to 2.7% in 2012 and increasing Government revenue by decreasing tax avoidance and evasion. A significant proportion of the measures represent cuts to public administration expenditure (principally Ministries and regions). Government expenditure will be reduced also by decreasing fraudulent claims for disability grants, implementing stricter measures to control healthcare spending and reducing senior public servant salaries by 10%. The decree also introduces hiring freezes for public institutions until 2013.

     In June 2009, the Government adopted a decree approving €11.5 billion of measures to be taken in the 2009-2012 period, including deficit-reduction plans for the five regions that recorded the highest healthcare budget deficits. The May 2010 decree also extends to 2013 the deficit-reduction plans introduced in 2009 affecting these five Italian regions.

     In order to stimulate growth in the manufacturing and services industries of the Mezzogiorno, the May 2010 decree also allows certain regions of Southern Italy to reduce regional corporate taxes and to exempt from taxation new productive activities for a period of time to be determined by decree.

Real GDP and Expenditures

     The following table sets forth information relating to real GDP and expenditures for the periods indicated.

Real GDP and Expenditures

	2005		2006		2007		2008		2009
	(euro in millions)
Real GDP		1,244,782		1,270,126		1,288,953		1,271,958		1,207,876
Add: Imports of goods and services		341,457		361,750		375,442		359,222		306,988
of which
Goods		273,071		287,855		294,916		279,003		235,719
Services		68,392		73,934		80,888		80,912		72,403
Total supply of goods and services		1,585,131		1,630,192		1,662,693		1,629,483		1,512,160
Less: Exports of goods and services		333,695		354,447		370,594		356,233		288,096
of which
Goods		270,778		286,192		300,251		288,156		229,347
Services		62,886		68,178		70,261		68,013		58,888
Total goods and services available for domestic expenditure(1)		1,251,436		1,275,745		1,292,099		1,273,250		1,224,064
Domestic expenditure
Private sector consumption		736,629		745,774		753,779		747,957		734,754
Public sector consumption		253,023		254,328		256,700		258,725		260,236
Total domestic consumption		989,781		1,000,194		1,010,565		1,006,837		995,158
Gross fixed investment		262,559		270,257		274,853		263,866		231,850
Total domestic expenditures(1)		1,252,340		1,270,451		1,285,418		1,270,703		1,227,008

⁽¹⁾ Total goods and services available for domestic expenditure do not match total domestic expenditure figures mainly due to the use of chain indices in calculating real growth.

Source: ISTAT

Selected Balance of Payments Indicators

     The following table shows the balance of payments for the periods indicated.

Selected Balance of Payments Indicators

	2005			2006			2007			2008			2009
	(euro in millions)
Current Account		(23,647	)		(38,346	)		(37,714	)		(56,835	)		(49,361	)
Capital Account		1,347			1,826			2,261			834			624
Financial Account		20,898			25,404			26,212			49,613			17,147
Errors and omissions		1,402			11,116			9,241			6,388			31,591

Source: Annual Report of the Bank of Italy (May 2010) for the year ended December 31, 2009.

     The improvement of Italy’s current account in 2009 is mainly attributable to a decrease in income deficit to €26.7 billion in 2009 from €29.4 billion in 2008, a €1.7 billion surplus in visible trade in 2009 compared to a €2.1 billion deficit in 2008, and a decrease in current transfers deficit to €13.3 billion in 2009 from €15.6 billion in 2008.

     The decrease in Italy’s capital account recorded in 2009 was mainly due to the decrease in current transfers surplus to €0.7 billion in 2009 from €0.8 billion in 2008.

     The system for gathering and compiling statistics to calculate Italy’s balance of payment indicators is undergoing significant change. The new system is based mainly on sample surveys of firms and administrative data and incorporates new information on direct investment, services and other investment. The Annual Report of the bank of Italy for 2009 reports that the €31.6 billion entered under errors and omissions in 2009 reflects recording problems that typically arise during such a transition.

Public Finance

     The following table sets forth general government revenues and expenditures and certain other key public finance measures for the periods indicated. 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

	2005			2006			2007			2008			2009
	(euro in millions)
Expenditures
Current expenditures		634,731			655,889			685,091			716,268			733,084
of which
Total consumption		275,365			282,223			286,865			298,822			308,777
of which
Wages and salaries		156,542			163,220			163,989			169,813			171,578
Cost of goods and services		118,823			119,003			122,876			129,009			137,199
Interest expense		66,065			68,578			77,126			81,161			71,288
Social services		242,345			252,178			264,387			277,263			291,335
Other current expenditures		50,956			52,910			56,713			59,022			61,684
of which
Production grants		12,910			13,070			14,872			15,053			15,103
Capital expenditures		58,668			74,511			62,516			58,368			65,770
of which
Investments(1)		33,711			34,786			35,796			34,602			37,040
Investment grants		22,279			22,471			25,133			22,154			24,445
Other capital expenditures		2,678			17,254			1,587			1,612			4,285
Total Expenditures		693,399			730,400			747,607			774,636			798,854
as a percentage of GDP		48.5	%		49.2	%		48.4	%		49.4	%		52.5	%
Revenues
Current revenues		625,682			676,614			719,882			728,355			701,955
of which
Tax revenues		392,551			434,180			460,273			455,749			429,611
of which
Direct taxes		189,815			213,867			233,170			239,740			222,655
Indirect taxes		202,736			220,313			227,103			216,009			206,956
Social security contributions		183,445			189,691			205,259			215,911			215,003
Revenues from capital		8,045			9,700			9,862			9,928			8,943
Other current revenues		41,641			43,043			44,488			46,767			48,398
Capital revenues		6,285			4,383			4,534			3,706			16,099
Total revenues		631,967			680,997			724,416			732,061			718,054
as a percentage of GDP		44.2	%		45.8	%		46.9	%		46.7	%		47.2	%
Current surplus/(deficit)		(9,049	)		20,725			34,791			12,087			(31,129	)
as a percentage of GDP		(0.6	)%		1.4	%		2.3	%		0.8	%		(2.0	)%
Net borrowing		61,432			49,403			23,191			42,575			80,800
as a percentage of GDP		4.3	%		3.3	%		1.5	%		2.7	%		5.3	%
Primary balance		4,633			19,175			53,935			38,586			-9,512
as a percentage of GDP		0.3	%		1.3	%		3.5	%		2.5	%		(0.6	)%
GDP (nominal value)		1,429,479			1,485,377			1,546,177			1,567,851			1,520,870

(1) Includes revenues from the disposal of state-owned real estate (deducted from capital expenditures) for the year 2005 (€3.2 billion), 2006 (€1.7 billion), 2007 (€1.4 billion), 2008 (€1.3 billion) and 2009 (€0.9 billion).

Source: Annual Report of the Bank of Italy (May 2010) for the year ended December 31, 2009.

          General government expenditures have increased in each of the last five years, while general government revenues have increased until 2008 and decreased in 2009. General government expenditures rose by 3.1 per cent in 2009, compared to 3.6 per cent in 2008. The increase in total expenditures was driven mainly by the increase in expense for social services, cost of goods and services and capital expenditures, the effect of which was partially offset by a decrease in interest expense. Social services expense increased in 2009 primarily as a result of a 4.3 per cent increase in pension expenditure, compared to a 4.0 per cent increase in 2008. Total cash payments paid by the Government in respect of social benefits represented 19.2 per cent of GDP in 2009 compared to 17.7 per cent in 2008. The increase in social services expense also resulted from a 10.7 per cent increase in expenditures for other social services (such as disability and unemployment benefits) in 2009, compared to 12.1 per cent in 2008. Public health care expenditures growth slowed down to 1.9 per cent in 2009, compared to 6.6 per cent in 2008, partly due to a decrease in expenditures for pharmaceutical products.

          General government revenue decreased by 2.0 per cent in 2009 compared to a 1.1 per cent increase in 2008. The decrease in government revenue is mainly due to direct tax revenue, which decreased by 7.7 per cent in 2009 compared to an increase of 2.8 per cent in 2008, principally due to slower growth in taxable revenue due to the world economic crisis. Similarly and for the same reasons, growth in social security contributions decreased by 0.4 per cent in 2009, compared to a 5.2 per cent increase in 2008. Italy also recorded a 4.4 per cent reduction in indirect tax receipts in 2009 compared to a 5.4 per cent reduction in 2008 generally due to lower VAT receipts. The effect of the decrease in tax revenues was partially offset by an increase in capital revenues linked to tax incentives aimed at repatriation of offshore capital by Italian nationals.

The Budget Process

     On December 31, 2009, Italy enacted legislation (“Law no. 196/2009”) modifying the cycle of economic and financial planning.

     As of 2010, on July 15 of each year, the Ministry of Economy and Finance presents to Parliament guidelines on public finance objectives.

     By September 15 of each year, the Ministry of Economy and finance sends to Parliament a document called the Decisione di Finanza Pubblica (Public Finance Decision) setting forth the objectives of economic policy and the framework of economic and public finance forecasts. The Public Finance Decision also articulates the objectives for central and local administrations and social security institutions, and is expected to be more comprehensive than the current Program Document.

     By October 15 of each year, the Ministry of Economy and Finance presents to Parliament its budgetary package, which consists of the Legge di Stabilità (“Stability Law”) and the Legge del Bilancio dello Stato (“State Budget Law”). The Stability Law sets out the measures for the reference period which are necessary to implement the program objectives indicated in the Public Finance Decision.

     The budget process for the previous year terminates on April 15 of each year, with the publication of the Relazione sull’Economia e la Finanza (Report on the Economy and Finance), replacing the Relazione Unificata sull’Economia e la Finanza (Unified Report on the Economy and Finance). The Report on the Economy and Finance analyses the current state of the economy, sets forth the income statement of public entities and compares such data with the relevant data for the previous year.

     While the Public Finance Decision for 2010 has not yet been published, in May 2010, Italy published the following revisions to its public finance targets:

Selected Public Finance Indicators

	2010			2011			2012
	(Millions of euro, except percentages)
Net borrowing, as a percentage of GDP		5.0	%		3.9	%		2.7	%
Structural net borrowing, as a percentage of GDP		3.3	%		2.5	%		2.0	%
Public debt, as a percentage of GDP		118.4	%		118.7	%		117.2	%

Source:   Report on the Economy and Public Finance for 2010, published in May 2010 (Relazione Unificata sull’Economia e la Finanza Pubblica per il 2010)

Composition of Tax Revenues

     The following table sets forth the composition of tax revenues for the periods indicated 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⁾

	2005		2006		2007		2008		2009
	(millions of euro)
Direct taxes
Personal income tax		132,663		142,062		150,130		158,263		153,509
Corporate income tax		33,699		39,475		50,520		47,438		37,678
Investment income tax		8,882		12,193		13,696		14,257		13,214
Other(2)		4,332		9,622		4,796		6,182		15,963
Total direct taxes		179,576		203,352		219,142		226,140		220,364
Indirect taxes
VAT		105,008		114,166		119,322		117,444		108,724
Other transaction-based taxes		18,090		20,430		17,244		21,362		21,033
Production taxes		26,615		26,690		25,645		24,086		26,464
Tax on State monopolies		8,511		9,349		9,785		9,904		10,070
National Lottery		12,364		10,191		11,800		11,315		12,826
Others		2,144		2,249		2,041		2,067		1,974
Total indirect taxes		172,732		183,075		185,837		186,178		181,091
Total taxes		352,308		386,427		404,979		412,318		401,455

(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 the “Composition of Tax revenues” table is prepared on a cash basis 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 2010) for the year ended December 31, 2009.

     In 2009, direct tax receipts decreased by 7.1 per cent compared to 2008, mainly as a result of a reduction in income tax and corporate tax revenues. During 2009, indirect tax receipts (accounted for on a cash basis) also recorded a slight decrease, by 4.2 per cent, mainly as a result of a decrease in VAT revenues. The decrease in indirect tax has been partially offset by a significant increase in revenues from tax on natural gas.

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. and ANAS S.p.A. (Azienda Nazionale Autonoma delle Strade) and debt incurred by other state sector entities, other general government entities and other liabilities reclassified as general Government debt pursuant to Eurostat rulings.

Total Treasury Issues

	March 31, 2010		June 30, 2010
	(Millions of euro)
Short-term bonds (BOT)		150,628		148,983
Medium- and long-term bonds (initially issued in Italy)		1,264,172		1,287,651
External bonds (initially issued outside Italy)(1)		70,143		72,008
Total Treasury issues		1,484,942		1,508,641

(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, 2010” below, which do not take into account: (i) the effect of currency swaps and (ii) the amount of bonds 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, 2010.

External Bonds of the Treasury as of June 30, 2010

				Initial
				Public						Original		Principal
				Offering						Principal		Amount		Equivalent in
Title	Interest Rate (%)			Price				Date of Issue	Maturity Date	Amount		Outstanding		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		2,852,253,280
$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		1,222,394,263
$1,500,000,000		5.97	%		100.00	%		December 20, 1996	December 20, 2004/12		1,500,000,000		1,500,000,000		1,222,394,263
$2,000,000,000		6.00	%		99.274	%		February 22, 2001	February 22, 2011		2,000,000,000		2,000,000,000		1,629,859,017
$2,000,000,000		5.625	%		99.893	%		March 1, 2002	June 15, 2012		2,000,000,000		2,000,000,000		2,444,788,526
$1,000,000,000		5.625	%		99.392	%		May 8, 2002	June 15, 2012		1,000,000,000		1,000,000,000		682,920,166
$2,000,000,000		5.375	%		98.436	%		February 27, 2003	June 15, 2033		2,000,000,000		2,000,000,000		1,629,859,017
$2,000,000,000		4.375	%		99.694	%		February 27, 2003	June 15, 2013		2,000,000,000		2,000,000,000		1,629,859,017
$100,000,000		4.17	%		100.00	%		November 14, 2003	November 15, 2010		100,000,000		100,000,000		81,492,951
$100,000,000		4.06	%		100.00	%	��	December 9, 2003	December 9, 2010		100,000,000		100,000,000		81,492,951
$4,000,000,000		4.50	%		99.411	%		January 21, 2005	January 21, 2015		4,000,000,000		4,000,000,000		3,259,718,034
$2,000,000,000		4.75	%		99.34	%		January 25, 2006	January 25, 2016		2,000,000,000		2,000,000,000		1,629,859,017
$3,000,000,000		5.25	%		99.85	%		September 20, 2006	September 20, 2016		3,000,000,000		3,000,000,000		2,444,788,526
$2,000,000,000		5.375	%		99.37	%		June 12, 2007	June 12, 2017		2,000,000,000		2,000,000,000		1,629,859,017
$2,500,000,000		3.500	%		99.69	%		June 4, 2008	July 15, 2011		2,500,000,000		2,500,000,000		2,037,323,771
$2,500,000,000		2.125	%		99.85	%		October 5, 2009	October 5, 2012		2,500,000,000		2,500,000,000		2,037,323,771
$2,500,000,000		3.125	%		99.67	%		January 26, 2010	January 26, 2015		2,500,000,000		2,500,000,000		2,037,323,771
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

				Initial					Original		Principal
				Public					Principal		Amount
Title	Interest Rate (%)			Offering Price			Date of Issue	Maturity Date	Amount		Outstanding		Equivalent in euro
€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
€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	cms 10Y				100.00	%	May 31, 2005	May 31, 2035		300,000,000		300,000,000		300,000,000
€720,000,000		3.83	%		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% cms 10y				100.00	%	June 8, 2005	June 8, 2020		200,000,000		200,000,000		200,000,000
€2,500,000,000	85% cms 10y				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% cms 10y				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		1,070,000,000		1,070,000,000
€250,000,000	2.00% linked to EU inflation index				99.02385	%	March 30, 2007	September 15, 2062		250,000,000		267,000,000		267,000,000
€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		525,000,000		525,000,000
€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
€250,000,000		4.85	%		98.50	%	June 11, 2010	June 11, 2060		250,000,000		250,000,000		250,000,000
Swiss Franc(3)
ChF 1,500,000,000		3.125	%		99.825	%	January 15,1999	July 15, 2010		1,500,000,000		1,500,000,000		1,129,262,968
ChF 1,000,000,000		2.75	%		100.625	%	July 1, 2004	July 1, 2011		1,000,000,000		1,000,000,000		752,841,978
ChF 2,000,000,000		2.50	%		100.09	%	February 2, 2005	March 2, 2015		2,000,000,000		2,000,000,000		1,505,683,957
ChF 1,000,000,000		2.50	%		99.336	%	January 30, 2006	January 30, 2018		1,000,000,000		1,000,000,000		752,841,978
Pound Sterling(4)
£400,000,000		10.50	%		100.875	%	April 28, 1989	April 30, 2014		400,000,000		400,000,000		489,326,564
£1,500,000,000		6.00	%		98.565	%	August 4, 1998	August 4, 2028		1,500,000,000		1,500,000,000		1,834,974,616
£250,000,000		5.25	%		99.476	%	July 29, 2004	December 7, 2034		250,000,000		250,000,000		305,829,103
£300,000,000	3m GBP libor+0.45bp				100	%	April 28, 2010	April 28, 2015		300,000,000		300,000,000		366,994,923
Norwegian Kroner(5)
NOK 2,000,000,000		6.15	%		100.00	%	September 25, 2002	September 25, 2012		2,000,000,000		2,000,000,000		250,862,339
NOK 2,000,000,000		4.34	%		100.00	%	June 23, 2003	June 23, 2015		2,000,000,000		2,000,000,000		250,862,339
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		1,149,002,666
¥125,000,000,000		4.50	%		100.00	%	June 8, 1995	June 8, 2015		125,000,000,000		125,000,000,000		1,149,002,666
¥100,000,000,000		3.70	%		100.00	%	November 14, 1996	November 14, 2016		100,000,000,000		100,000,000,000		919,202,133
¥100,000,000,000		3.450	%		99.80	%	March 24, 1997	March 24, 2017		100,000,000,000		100,000,000,000		919,202,133
¥25,000,000,000		2.87	%		100.00	%	May 18, 2006	May 18, 2036		25,000,000,000		25,000,000,000		229,800,533
¥50,000,000,000	3 mth JPY libor				100.00	%	April 24, 2008	April 24, 2018		50,000,000,000		50,000,000,000		459,601,066
¥30,000,000,000	3 mth JPY libor+40 b.p.				100.00	%	July 8, 2009	July 8, 2019		30,000,000,000		30,000,000,000		275,760,640
¥30,000,000,000	3 mth JPY libor+37 b.p.				100.00	%	September 18, 2009	September 18, 2019		30,000,000,000		30,000,000,000		275,760,640
Czech Koruna(7)
CZK2,490,000,000		4.36	%		100.00	%	October 3, 2007	October 3, 2017		2,490,000,000		2,490,000,000		96,921,101
CZK2,490,000,000		4.40	%		100.00	%	October 3, 2007	October 3, 2019		2,490,000,000		2,490,000,000		96,921,101
CZK2,490,000,000		4.41	%		100.00	%	October 3, 2007	October 3, 2019		2,490,000,000		2,490,000,000		96,921,101
TOTAL OUTSTANDING														62,284,974,500	(8)

(1)	U.S. dollar amounts have been converted into euro at $1.2271/€1.00, the exchange rate prevailing at June 30, 2010.
(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 ChF1.3283/€1.00, the exchange rate prevailing at June 30, 2010.
(4)	Pounds Sterling amounts have been converted into euro at £0.81745/€1.00, the exchange rate prevailing at June 30, 2010.
(5)	Norwegian Kroner amounts have been converted into euro at NOK7.9725/€1.00, the exchange rate prevailing at June 30, 2010.
(6)	Japanese Yen amounts have been converted into euro at ¥108.79/€1.00, the exchange rate prevailing at June 30, 2010.
(7)	Czech Koruna amounts have been converted into euro at CZK25.691/€1.00, the exchange rate prevailing at June 30, 2010.
(8)	The amount of external bonds shown above does not take into account (i) approximately €1,146 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, 2010
Currency	Before Swap			After Swap
US Dollars		45.01	%		3.20	%
Euro		34.09	%		96.80	%
Swiss Francs		6.69	%		—
Pounds Sterling		4.25	%		—
Norwegian Kroner		0.81	%		—
Japanese Yen		8.68	%		—
Czech Koruna		0.47	%		—
Total External Bonds (in millions of Euro)		62,284.9

Source: Ministry of Economy and Finance.