International Funding Program
Along with its funding activity on the domestic debt market, the Republic of Italy has established a long-dated presence on international capital markets. The international funding program is instrumental for the Treasury's objectives of diversifying the international investor base in Italian government securities and therefore containing its long-term borrowing cost and refinancing risk.
Access to international capital markets takes place through the following facilities:
For all purposes, the international funding program results in direct and unsubordinated obligations of the Republic of Italy , which rank pari passu with the traditional domestic securities. It is noteworthy that the currency of denomination is not the key element in distinguishing between the Treasury's domestic and external debt securities. Although domestic securities can only be offered in Euros, international securities may also be denominated in this currency as well. Rather, the main distinction rests in the different processes for placement, such as underwriting and distribution.
Because the Republic is not usually willing to take foreign currency risk, most of the funding raised on international markets is swapped back into euros. Therefore, the official figures on the outstanding stock of debt of the Republic of Italy are released "after swaps", meaning that the international debt is calculated in the destination currency rather than the currency of denomination at issuance.