The treasury is seeking liquidity in an effort to bring growing shares of public debt back into the hands of Italian investors to avoid dangerous speculation about spillovers in financial markets. The 19th issue of BTP Italia in March fits this strategy, making it a very attractive medium-term investment for small Italian investors considering the inflation index and the maximum ultimate loyalty bonus.
- Btp Italia: new issue
- Btp Italia: who benefits
- Btp Italia: how does it work?
So why did the Treasury decide to focus on Italian investors? What are the main features of the new BTP Italia? For whom is it suitable? Let’s see in this short guide.
Public debt: Treasury focuses on small investors
Btp Italia is an inflation indexed bond created by the Treasury specifically to attract the retail public (called small savers). After turbulence over the spread in recent years, which has fueled financial fears over Italy’s solvency, the government has decided to change its strategy on public debt. It is better to reduce exposure to international financial institutions (to avoid possible spillover attacks) and to rely on small Italian investors, who are more likely to hold government securities in their portfolios and are more inclined not to trade (in jargon) in case of market turmoil. these are called drawers).
Thus, Btp Italia was born, which published its 19th issue with the increasing participation of small savers. Let’s just say that in the last issue in November 2022, 12 billion euros were collected, 7.2 billion of which went to families. Inflation-indexed bonds attracted 256,000 savers and ranked second after record issuance in 2020. The good news is, given that our country’s financial needs will require an increase in the availability of public debt from private investors in Italy, according to calculations by Scope Ratings. about 90-120 billion euros per year. This is because foreign investors are less exposed to Italian debt (such low figures have not been seen for 7 years) and at the same time, the ECB has decided to gradually reduce the EU member states’ purchases of government bonds.
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
