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Dec 19, 2013

Analysis: Italy must earn foreign help with 2014 funding

MILAN (Reuters) – Italy must show political stability and convincing signs of an economic recovery to secure foreign demand for its debt in 2014, when domestic banks are expected to slow their purchases of the country’s bonds.

The Treasury is confident foreign buyers will take up the slack to help it sell an estimated 460-470 billion euros ($632-$645 billion) of gross debt next year, but analysts warn external demand will be more conditional and sensitive to risks.

Dec 19, 2013

Italy must earn foreign help with 2014 funding

MILAN, Dec 19 (Reuters) – Italy must show political
stability and convincing signs of an economic recovery to secure
foreign demand for its debt in 2014, when domestic banks are
expected to slow their purchases of the country’s bonds.

The Treasury is confident foreign buyers will take up the
slack to help it sell an estimated 460-470 billion euros
($632-$645 bln) of gross debt next year, but analysts warn
external demand will be more conditional and sensitive to risks.

Dec 5, 2013

ECB delays approving revaluation of Italy central bank capital

MILAN, Dec 5 (Reuters) – The European Central Bank has
delayed approving a planned revaluation of Bank of Italy capital
held by commercial banks following an intervention by Germany’s
Bundesbank, a source close to the matter said on Thursday.

The ECB had been due to give the green light to revaluing
the Italian central bank’s capital, which is held by Italy’s
commercial banks but has been frozen since the 1930s, when it
was set at the equivalent of 156,000 euros ($213,000).

Sep 12, 2013

Italian banks may face funding challenge after LCH rule change

MILAN, Sept 12 (Reuters) – British clearing house
LCH.Clearnet has dropped a guarantee on Italian government
bonds’ repo transactions, potentially hurting an important
funding channel for Italian banks while many still grapple with
capital shortfalls.

The move increases the potential risk for investors settling
Italian government bond repos – short-term loans guaranteed by
Italian debt securities – through LCH, analysts said.

Sep 10, 2013

Bank of Italy says Carige faces risk on derivatives

MILAN, Sept 10 (Reuters) – Mid-sized lender Carige
is emerging as the latest Italian banking problem after the Bank
of Italy said in a report the Genoa bank had engage in onerous
derivatives trades and raised objections to its accounting
methods and valuations.

Italy’s banking sector has been shaken earlier this year by
a derivatives scandal exploded at Banca Monte dei Paschi di
Siena, which is under investigation and faces
nationalisation if it fails to find investors for a vital 2.5
billion euro ($3.3 billion) capital hike.

Sep 8, 2013

Italian PM warns of risks in crunch week for Berlusconi

CERNOBBIO, Italy (Reuters) – Italian Prime Minister Enrico Letta warned of the risk of fresh political turmoil on Sunday, a day before a Senate committee meets to decide whether to expel the country’s former leader Silvio Berlusconi from parliament.

As the two main partners in his fragile coalition prepare for a showdown over Berlusconi’s future, Letta told business leaders that economic recovery had been hampered for too long by Italy’s “permanent political chaos”.

Sep 7, 2013

Italy won’t block foreign takeovers: Economy Minister

MILAN (Reuters) – Italy has no plans to oppose foreign takeovers of domestic companies, its economy minister said on Saturday, as suitors size up Telecom Italia (TLIT.MI: Quote, Profile, Research, Stock Buzz) and Finmeccanica’s (SIFI.MI: Quote, Profile, Research, Stock Buzz) power engineering business.

The defense group is in talks to sell AnsaldoEnergia to South Korea’s Doosan Heavy Industries (034020.KS: Quote, Profile, Research, Stock Buzz) while Egyptian tycoon Naguib Sawiris expressed interest in Italy’s main telecoms operator ahead of a September 19 board meeting.

Sep 5, 2013

Italy finances slipping as political crisis brews

ROME (Reuters) – Italy, which three months ago got off the European Union’s blacklist of countries with excessive fiscal deficits, may be put straight back on it next year unless it can reverse a worrying trend in its public finances.

Enrico Letta’s government has been forced to respect the tax cutting promises of Silvio Berlusconi’s People of Freedom Party (PDL), a vital part of the ruling coalition, while a deeper than expected recession is also weighing on state accounts.

May 3, 2013

Telecom Italia asks state financier to buy network stake – source

MILAN, May 3 (Reuters) – Telecom Italia has asked
state financing body CDP to buy a stake in its fixed-line
network, a source with knowledge of the deal said, in a move
that could smooth a tie-up between the Italian firm and Hong
Kong’s Hutchison Whampoa.

The source said Telecom Italia had sent CDP a draft proposal
suggesting it purchase a stake in a yet-to-be-created new
network company via the Fondo Strategico Italiano (FSI), a fund
controlled by the CDP.

Apr 16, 2013

Exclusive: Italy raises funding target, sees big potential Asia demand

MILAN (Reuters) – Italy has raised its debt issuance target for this year by nearly 10 percent and is hoping to tap demand from Asian investors to meet the goal, its head of debt management told Reuters on Tuesday.

In an interview, Maria Cannata said the treasury has lifted its gross funding target for 2013 to just over 450 billion euros ($589 billion) from a previous estimate of 415 billion euros.