New issue of BTPs, Italian State Treasury Bonds. gave Ministry of Economy and Finance announced that it will make new debt securities available through the services of certain investment banks. In addition to the issue of 7-year bonds, a new possibility will be presented: the return of 30-year BTPs.
Miff’s decision comes on the heels of one of the best spillover results since then. Maloney Govt took office. Thanks to a number of factors, borrowing for the Italian state is much cheaper now than it was a few months ago.
New BTPs of Mef
With a statement published on its official website, That Mef has announced that it will make available two new types of BTPs, multi-year treasury bonds that represent one of the most common debt guarantees of the Italian state: “The Ministry of Economy and Finance has announced that it has Deutsche The bank’s AG, Goldman Sachs Bank Europe SE, Intesa Sanpaolo SpA, JP Morgan SE, Morgan Stanley Europe SE and Nomura Financial Products Europe GmbH have mandated an issue. Double episode Through the syndication of the new 7-year BTP benchmark expiring on November 15, 2031,” reads the first part of the ministry’s note.
However, there will also be something new in the panorama of Italian government bonds. The MEF, along with the new issue of 7-year BTPs, also announced a “reopening for amounts not exceeding €3 billion”.Not growing) of 30-year-old BTPwith maturity 1 October 2054 and coupon 4.30% (ISIN IT0005611741). The transaction will be conducted in the near future, subject to market conditions,” concluded the press release published on the ministry’s website.
Because at this time it is better for the state to issue BTP.
Hence a new possibility for those who wish to buy treasury bonds, which have very different repayment periods by the government. A major investment in Italy’s future, but also a deal for the state. In fact, in recent weeks, BTP production has dropped significantly. As a result, there is debt Government The cost of contracts in these months is much lower than in previous years.
The reasons for these results are varied. The European Central Bank’s decision to cut interest rates helped. A lower cost of money has the effect of reducing interest on all debt, including that borrowed by the state. Ratings from Fitch and S&P rating agencies were factored into this factor. Both confirmed. Classification BBBAlong with, Fitch is also upgrading the outlook from stable to positive. This suggests that Italy can emerge relatively quickly from its debt crisis.
Interest on debt is a very important part of the Italian state’s annual expenditure. They cost an average of more than 4% of GDP and their reduction would free up resources for other investments. The problem BTP During periods when yields on government bonds are low, this limits the cost of borrowing and hence the cost of borrowing.
