Monitoring P.A. Entities' Borrowing and market access
MONITORING (Ministerial Decree no. 389 of 1/12/2003, article 1, paragraph 1)
Article 41, "Local Authorities' Finance," of Law no. 448 of 28 December 2001 (2002 Financial Law), began the MEF's coordination of capital market access so as to contain borrowing costs and monitor public finance trends, also establishing that the entities must periodically provide the MEF with data on mortgages, issues, securitizations, and derivative operations.
Decree no. 389 of 1 December 2003, which adopts the Regulation containing the implementation norms of the above mentioned Law (published in Official Gazette no. 28 of 4/2/2004), defines the procedures that local authorities must follow to access capital markets and to transmit the data to monitor borrowing.
The subsequent Ministry of Economy and Finance's circular of 27/5/2004 (published in Official Gazette no. 128 of 3/6/2004) provided further guidelines regarding the cited Regulation, and, following the positive opinion of the Unified Conference [State, Regions, and Local Authorities] (session of 29/4/2004, proceedings 732/CU of the Presidency of the Council of Ministers), approved the debt monitoring models with the Director's Decree of 3 June 2004 (published in Official Gazette no. 168 of 20/7/2004).
NEW CEAM SYSTEM TO COMMUNICATE BORROWING DATA REGARDING LOCAL AUTHORITIES
In 2008 Directorate II began a new procedure (CEAM System), complementary to the system used until then, for Local Authorities to collect and transmit quarterly data on borrowing and their processing/aggregation by the Treasury Department.
This procedure provides for sending the above data no longer via email with Excel forms but through a web interface, that is, inputing the data directly into the Public Debt website (in the section dedicated to Local Authorities) with a guided and controlled procedure: the data entered are the same as that entered into the Excel forms (described below) approved by the Unified Conference. The old procedure of sending the data to Office IV's email address using the mentioned forms remains in place until Entities are not signed up to the CEAM System.
DATA COLLECTION FORMS
Until Entities do not sign up to the CEAM System, the forms used to send the data - on the current amount of financial exposure - are contained in Excel files (Office 97/2000) and are structured as follows:
- ISSUES.xls - contains the form to collect issues of securities (BOC, BOP, and BOR [Municipal, Provincial, and Regional securities]) and detailed data-entry instructions.
- MORTGAGES.xls - contains a form to collect data on floating rate mortgages, another for fixed rate mortgages, and detailed data-entry instructions. Mortgages for which the entity does not pay interest but only returns the principal (FRISL) must also be indicated.
- SECURITIZATION.xls - contains a form to collect securitization data including any issues of securities and detailed data-entry instructions. The section on issues need not be filled in if the securitization did not generate the issue of securities on the market.
Mortgages contracted with the Cassa DD.PP. must not be included. Entities that have only contracted mortgages with Cassa DD.PP., only need to send an email informing of the fact, but must keep the files for any future mortgages contracted with Institutes other than the Cassa DD.PP. or for issues.
Files containing data and/or communications of any kind must be sent to Office IV's email address dt.direzione2.ufficio4@tesoro.it
After this initial transmission, which will allow Office IV to enter the data on financial exposure into their database, the entity will provide, by the 15th of February, May, August, and November, only data on new mortgages/issues/securitizations or changes to information already transmitted (renegotiations, advance extinctions, swap contracts).
ACCESS TO CAPITAL MARKETS (Ministerial Decree no. 389 of 1/12/2003, article 1, paragraphs 2 and 3)
The Entity must give Office IV prior notice of the characteristics of medium/long-term funding operations and securitizations of amounts equal to or greater than 100 million euros that it intends to carry out. The communication, apart from the standard postal service, can be sent via email to accesso.mercati@tesoro.it, by fax to 06/47613197 or by mail to the Ministry of Economy and Finance, Treasury Department, Directorate II, Office IV, via XX Settembre 97, 00187 Rome.
If the assessment request is sent by email, the 10 days needed for tacit approval begin with Office IV's notification of having received the message.
OFFICE IN CHARGE
Office IV, Directorate II of the Treasury Department is appointed to supervise the Monitoring and Market Access procedures.
WHO TO CONTACT FOR INFORMATION OR EXPLANATIONS
Cesare Fagnani email: cesare.fagnani@tesoro.it - tel. 06/47614830
Maria Alessandra Fabi email: malessandra.fabi@tesoro.it - tel. 06/47616092
Loredana Fiorindo email: loredana.fiorindo@tesoro.it - tel. 06/47616095
Marina Panichi email: marina.panichi@tesoro.it - tel. 06/47613164
Adelina Faraldo email: adelina.faraldo@tesoro.it - tel. 06/47616094
Giovanni Pasciuto email: giovanni.pasciuto@tesoro.it - tel. 06/47614831
Stefania Favero email: stefania.favero@tesoro.it - tel. 06/47614837
Anna Rita Viti email: annarita.viti@tesoro.it - tel. 06/47614838
Pietro Racca email: pietro.racca@tesoro.it - tel.06/47613134
Antonella Lilli email: antonella.lilli@tesoro.it - tel.06/47614339
The Office Head is Dr. Ottavio Caleo
tel. 06/47616651 - email: ottavio.caleo@tesoro.it
