Exhibit 1
Amendment dated March 11, 2011
Explanatory Note
The information included herein replaces certain specified information about the Republic of Italy contained in Exhibit 1, Description of The Republic of Italy (the “Original Exhibit”), to the Republic’s Annual Report on Form 18-K for the fiscal year ended December 31, 2009. To the extent that the information included herein differs from the information set forth in the Original Exhibit, you should rely on the information included herein.
Summary Information — 2010 Developments
At page 8 of the Original Exhibit, the phrases “Consumer prices, as measured by the harmonized EU consumer price index, increased at an annual rate of 1.5 per cent during the twelve months ended December 31, 2009, compared to a 2.4 per cent increase during the twelve months ended December 31, 2008. Consumer prices, as measured by the harmonized EU consumer price index, increased at an annual rate of 1.9 per cent during the twelve months ended December 31, 2010” are replaced in their entirety by “Consumer prices, as measured by the harmonized EU consumer price index (HICP), increased at an annual rate of 0.8 per cent during the twelve months ended December 31, 2009, compared to a 3.5 per cent increase during the twelve months ended December 31, 2008. The HICP index increased at an annual rate of 1.6 per cent during the twelve months ended December 31, 2010”.
The Italian Economy — 2010 Developments
At page 19 of the Original Exhibit, the phrase “Consumer prices, as measured by the harmonized EU consumer price index, increased at an annual rate of 1.5 per cent during the twelve months ended December 31, 2009, compared to a 2.4 per cent increase during the twelve months ended December 31, 2008” is replaced in its entirety by “Consumer prices, as measured by the harmonized EU consumer price index (HICP), increased at an annual rate of 0.8 per cent during the twelve months ended December 31, 2009, compared to a 3.5 per cent increase during the twelve months ended December 31, 2008. The HICP index increased at an annual rate of 1.6 per cent during the twelve months ended December 31, 2010”.
Monetary System — Credit Allocation
At page 50 of the Original Exhibit, the phrase “During 2008, lending activity decreased to -0.7 per cent, from a 5.8 per cent growth in 2008” is replaced in its entirety by “During 2009, lending activity decreased by 0.7 per cent, compared to a 5.8 per cent growth in 2008”.
The External Sector of the Economy — Foreign Trade
At page 52 of the Original Exhibit, the “Foreign Trade” table is replaced in its entirety by the following table.
Foreign Trade
2007 | 2008 | 2009 | ||||||||||
(euro in millions) | ||||||||||||
Exports (fob) | ||||||||||||
Agriculture, forestry and fishing | 4,992 | 5,354 | 4,555 | |||||||||
Extractive industries | 1,312 | 1,707 | 1,061 | |||||||||
Manufactured products | 348,383 | 350,599 | 277,091 | |||||||||
Food, beverage and tobacco products | 19,166 | 20,907 | 19,967 | |||||||||
Textiles, leather products, clothing, accessories | 42,308 | 40,912 | 33,127 | |||||||||
Wood, wood products, paper, printing | 7,341 | 7,136 | 6,167 | |||||||||
Coke and refined oil products | 13,142 | 15,440 | 9,389 | |||||||||
Chemical substances and products | 22,341 | 22,217 | 17,858 | |||||||||
Pharmaceutical, chemical-medical, botanical products | 11,986 | 11,938 | 12,281 | |||||||||
Rubber, plastic, non-metallic mineral products | 23,279 | 22,435 | 18,143 | |||||||||
Base metal, metal (non-machine) products | 44,465 | 45,342 | 32,239 | |||||||||
Computers, electronic and optical devices | 12,396 | 11,355 | 9,591 | |||||||||
Electrical equipment | 21,780 | 21,839 | 17,183 | |||||||||
Machines and other non-classified products | 68,776 | 71,024 | 55,035 | |||||||||
Transportation means | 39,962 | 39,422 | 29,525 | |||||||||
Products from other manufacturing activities | 21,441 | 20,633 | 16,586 | |||||||||
Electrical energy, gas, steam, air conditioning | 113 | 366 | 437 | |||||||||
Products from waste treatment and recycling | 1,115 | 1,134 | 856 | |||||||||
Other products | 8,829 | 9,856 | 7,548 | |||||||||
Total exports | 364,744 | 369,016 | 291,549 | |||||||||
Imports (cif) | ||||||||||||
Agriculture, forestry and fishing | 10,409 | 10,874 | 9,609 | |||||||||
Extractive industries | 54,252 | 68,882 | 44,865 | |||||||||
Manufactured products | 295,226 | 287,887 | 230,432 | |||||||||
Food, beverage and tobacco products | 23,495 | 24,343 | 22,601 | |||||||||
Textiles, leather products, clothing, accessories | 25,524 | 24,718 | 21,846 | |||||||||
Wood, wood products, paper, printing | 10,810 | 9,897 | 7,941 | |||||||||
Coke and refined oil products | 6,941 | 8,442 | 5,751 | |||||||||
Chemical substances and products | 33,431 | 32,196 | 25,788 | |||||||||
Pharmaceutical, chemical-medical, botanical products | 14,288 | 14,666 | 16,254 | |||||||||
Rubber, plastic, non-metallic mineral products | 11,305 | 10,999 | 9,365 | |||||||||
Base metal, metal (non-machine) products | 47,399 | 44,407 | 24,758 | |||||||||
Computers, electronic and optical devices | 25,687 | 24,648 | 22,667 | |||||||||
Electrical equipment | 12,491 | 12,689 | 10,451 | |||||||||
Machines and other non-classified products | 27,122 | 26,806 | 18,909 | |||||||||
Transportation means | 46,767 | 44,316 | 35,176 | |||||||||
Products from other manufacturing activities | 9,967 | 9,762 | 8,885 | |||||||||
Electrical energy, gas, steam, air conditioning | 2,170 | 2,284 | 2,864 | |||||||||
Products from waste treatment and recycling | 3,617 | 4,056 | 2,053 | |||||||||
Other products | 7,667 | 8,067 | 7,102 | |||||||||
Total imports | 373,340 | 382,050 | 296,926 | |||||||||
Trade balance | (8,596 | ) | (13,034 | ) | (5,377 | ) | ||||||
Source: Annual Report of the Bank of Italy (May 2010) for the year ended December 31, 2009. |
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Public Debt — General
At page 92 of the Original Exhibit, the “Total Treasury Issues” table is replaced in its entirety by the following table.
Total Treasury Issues
June 30, 2009 | Sept 30, 2009 | Dec 31, 2009 | ||||||||||
(euro in millions) | ||||||||||||
Short-term bonds (BOT) | 175,050 | 167,976 | 140,096 | |||||||||
Medium-and long-term bonds (initially issued in Italy) | 1,189,738 | 1,241,076 | 1,236,446 | |||||||||
External bonds (initially issued outside Italy)(1) | 61,394 | 59,323 | 60,058 | |||||||||
Total Treasury issues | 1,426,182 | 1,468,375 | 1,436,599 |
(1) | Italy ordinarily 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 it is not directly comparable to the total amount of external bonds indicated in the table “External Bonds of the Treasury as of December 31, 2009”, which does 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.
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