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0001193125-12-248881.txt : 20120525 0001193125-12-248881.hdr.sgml : 20120525 20120525141554 ACCESSION NUMBER: 0001193125-12-248881 CONFORMED SUBMISSION TYPE: 18-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20101231 FILED AS OF DATE: 20120525 DATE AS OF CHANGE: 20120525 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ITALY REPUBLIC OF CENTRAL INDEX KEY: 0000052782 STANDARD INDUSTRIAL CLASSIFICATION: FOREIGN GOVERNMENTS [8888] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 18-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 033-66360 FILM NUMBER: 12870639 BUSINESS ADDRESS: STREET 1: MINISTRY OF ECONOMY AND FINANCE STREET 2: VIA XX SETTEMBRE, 97 CITY: ROME STATE: L6 ZIP: 00187 BUSINESS PHONE: (39) 06-86391271 MAIL ADDRESS: STREET 1: C/O STUDIO LEGALE BISCONTI STREET 2: VIA A. SALANDRA, 18 CITY: ROME STATE: L6 ZIP: 00187 18-K/A 1 d359315d18ka.htm AMENDMENT NO.1 TO FORM 18-K
FORM 18-K/A
Amendment No. 1
For Foreign Governments and Political Subdivisions Thereof
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ANNUAL REPORT
of
THE REPUBLIC OF ITALY
(Name of Registrant)
Date of end of last fiscal year: December 31, 2010
SECURITIES REGISTERED*
(As of close of the fiscal year)
Name and address of Authorized Agent of the Registrant in the United States to receive notices and communications from the Securities and Exchange Commission:
THE HONORABLE CLAUDIO BISOGNIERO
Italian Ambassador to the United States
3000 Whitehaven Street, N.W.
Washington, D.C. 20008
It is requested that copies of notices and communications from the Securities and Exchange
Commission be sent to:
MICHAEL S. IMMORDINO
White & Case LLP
5 Old Broad Street
London EC2N 1DW
United Kingdom
*
The Republic of Italy files Annual Reports on Form 18-K voluntarily in order for The Republic of Italy to incorporate such Annual Reports into its shelf registration statements. The Republic of Italy is filing this amendment on Form 18-K/A to its Annual Report for the year ended December 31, 2010 voluntarily.
TABLE OF CONTENTS
This amendment to the annual report of the Republic of Italy on Form 18-K for the year ended December 31, 2010 comprises:
(a)
(b)
Pages numbered (i) to (iii) consecutively.
The following exhibit:
Exhibit
1 Recent Developments Update, dated May 24, 2012
This amendment to the annual report is filed subject to the Instructions for Form 18-K for Foreign Governments and Political Subdivisions thereof.
ii
SIGNATURE
Pursuant to the requirements of the United States Securities Exchange Act of 1934, the registrant Republic of Italy has duly caused this Amendment No. 1 to the annual report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Rome, Italy on the 24th day of May, 2012.
iii
EX-1 2 d359315dex1.htm EX-1
Exhibit 1
Recent Developments Update dated May 24, 2012
The information included in this Exhibit 1 replaces and/or supplements the information about the Republic of Italy that is contained in Exhibit 1 to the Republic of Italys annual report on Form 18-K, for the fiscal year ended December 31, 2010 (as filed with the Securities and Exchange Commission on October 21, 2011). To the extent that the information included in this Exhibit 1 differs from the information set forth in the annual report, you should rely on the information in this Exhibit 1.
I. Summary Information The Italian Political System
On November 12, 2011, Mr. Berlusconi presented his resignation to President Giorgio Napolitano, who appointed Professor Mario Monti to form a new government in Italy, which received the confidence vote of the Parliament. Monti was sworn in as Prime Minister on November 16, 2011.
II. Summary Information 2011 Developments: The Italian Economy Measures to Address the 2007-2011 Financial and Economic Crisis
The Italian Government, led by Prime Minister Mario Monti, has enacted a series of measures to address the 2007-2011 financial and economic crisis.
A. The Save Italy Decree
In December 2011, the Italian Government approved approximately 30 billion in austerity measures aimed at balancing the Italian budget by 2013 and stimulating the growth of the Italian economy through Law Decree No. 201, converted by the Parliament into Law No. 214 on December 22, 2011 (Law 214). Law 214 is commonly referred to as the Decreto Salva Italia or the Save Italy Decree. The measures comprising the Save Italy Decree resulted in part from measures taken earlier in 2011.
The principal measures introduced by Law 214 (which in most cases became effective from the beginning of 2012) include, inter alia:
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2
3
B. The Grow Italy Decree
In January 2012, the Italian Government approved a second round of measures to further promote the growth of the Italian economy through Law Decree No. 1 dated January 24, 2012, converted by the Parliament into Law No. 27 on March 24, 2012 (Law 27). Law 27 is also known as the Decreto Cresci Italia or the Grow Italy Decree.
The reforms introduced by Law 27 focus on two main areas: economic liberalization and consumer protection.
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C. Administrative Cost Reductions
The Italian Government adopted a third round of reforms through Law Decree No. 5 of February 9, 2012, converted, with amendments, by the Parliament into Law No. 35 on April 4, 2012. This decree provides for the simplification of certain administrative functions through the introduction of electronic document production, the streamlining of bureaucratic processes and the simplification of privacy laws, including, inter alia, the elimination of the Programmatic Document for Security of Personal Data. According to the government, these measures seek to reduce administrative costs by at least 500 million annually.
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D. Labor Reforms
On March 23, 2012, the Italian Government proposed a fourth set of reforms through a Bill in Parliament (Disegno di Legge). The Bill was presented to the Italian Parliament for discussion on April 4, 2012. These reforms are aimed at reducing labor costs and attracting increased foreign direct investment in Italy. In particular, the reforms aim to create a dynamic, flexible and inclusive labor market, i.e. one that is able to contribute to the economic and social development of Italy and stimulate competitiveness and job creation. One particularly significant measure concerns the reform of employment termination programs (ammortizzatori sociali) and the promotion of increased labor flexibility, which would increase the circumstances under which employers could lay off employees for economic reasons, except in cases where compensation is due under contract.
These reforms aim to create an inclusive and dynamic labor market that can support high levels of employment and high quality jobs through, inter alia, encouraging more stable employment relationships and reaffirming the importance of permanent employment contracts (contratti a tempo indeterminato) as the common form of employment relationship.
The Bill is currently under discussion in the Italian Parliament.
III. Summary Information Economic and Finance Document 2012 (Documento di Economia e Finanza) (the DEF)
On April 18, 2012, the Italian Council of Ministers approved, through Communication No. 25, the DEF for 2012.
The following tables present, respectively, (i) the Republic of Italys public finance objectives through 2015, (ii) the macroeconomic forecasts prepared by the Republic of Italy through 2015 in connection with the Stability Program and (iii) the anticipated impact of the recent measures (summarized in Item II above) taken by the Italian Government on key economic indicators of the Republic of Italys growth through 2020.
Public Finance Objectives (in % of GDP)
Source: Ministry of Economy and Finance.
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Macroeconomic Forecasts (in %)
Source: Ministry of Economy and Finance.
National Reform Programs Impact on the Republic of Italys Growth
Source: Ministry of Economy and Finance.
IV. Summary Information Ratings of the Republic of Italys Indebtedness
Leading rating agencies have downgraded the sovereign debt of the Republic of Italy. Instability in global credit markets increased in the Fall of 2011 and continued as the debt crisis continued in Greece and Portugal and extended to Italy, France and Spain. In September 2011, the Republic of Italys long term credit was rated A by Standard & Poors, A+ by Fitch Ratings and Aa2 by Moodys. Since then, the
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leading rating agencies progressively downgraded the Republic of Italys rating and as of the date hereof, the Republic of Italys long-term credit is rated BBB+ with negative outlook by Standard & Poors, A- with negative outlook by Fitch Ratings and A3 with negative outlook by Moodys.
A security rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by the assigning rating agency. Any adverse change in an applicable credit rating could adversely affect the trading price for the Republic of Italys sovereign debt and has the potential to affect the Republic of Italys cost of funds in the international capital markets and the liquidity of and demand for the debt securities of the Republic of Italy.
V. Public Finance The European Economic and Monetary Union
The Republic of Italy was among the 25 EU member states that entered into a new intergovernmental treaty (the EU Treaty on Stability, Coordination and Governance in the Economic and Monetary Union) (the Treaty) on March 2, 2012. The Treaty defines new, rigid fiscal rules aimed at strengthening the public finances and economic resources of each EU member state and requires member states to balance their national budgets or face sanctions. The Treaty requires EU member states to maintain broadly balanced budgets and prohibits member states from budgeting or spending more than they receive from tax and other revenue over the medium term. In addition, the Treaty sets a deficit limit at 0.5% of a member states gross domestic product (GDP). Member states that exceed this deficit limit would be required to balance their budget under the oversight and supervision of the other EU member states. EU member states will also be required to adopt and codify the Treatys balanced budget rule in their national constitutions or other laws.
The Treaty will enter into force upon ratification by at least 12 member states. As of the date hereof, certain member states have already ratified the Treaty.
VI. Public Debt
The following table summarizes the total debt securities issued by the Treasury of the Republic of Italy and outstanding as of December 31, 2011. Total Treasury issues differ from Italys total public debt as the former do not include liabilities to holders of postal savings accounts and debt incurred by other state sector entities, other general government entities and other liabilities reclassified as general Government debt pursuant to Eurostat rulings.
Total Treasury Issues as of December 31, 2011
(1)
Italy often enters into currency swap agreements in the ordinary course of managing its debt. The total amount of external bonds shown above takes into account the effect of these arrangements and is not directly comparable to the total amounts of external bonds indicated in the table
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External Bonds of the Treasury as of December 31, 2011 below, which do not take into account: (i) the effect of currency swaps and (ii) the amount of bonds outstanding under Italys $10 billion Commercial Paper program.
Source: Ministry of Economy and Finance.
VII. Tables and Supplementary Information External Bonds of the Treasury as of December 31, 2011
The following table shows the external bonds of the Republic of Italys Treasury issued and outstanding as of December 31, 2011.
External Bonds of the Treasury as of December 31, 2011
9
10
11
12
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(*)
U.S. dollar amounts have been converted into euro at $1.4385/1.00, the exchange rate prevailing at Dec 31, 2011.
External debt denominated in currencies of countries that have adopted the euro have been converted into euro at the fixed rate at which those currencies were converted into euro upon their issuing countries becoming members of the European Monetary Union.
Bonds issued by Infrastrutture S.p.A.
Swiss Franc amounts have been converted into euro at ChF1.2275/1.00, the exchange rate prevailing at Dec 31, 2011.
Pounds Sterling amounts have been converted into euro at £0.87205/1.00, the exchange rate prevailing at Dec 31, 2011.
Norwegian Kroner amounts have been converted into euro at NOK7.759/1.00, the exchange rate prevailing at Dec 31, 2011.
Japanese Yen amounts have been converted into euro at ¥117.22/1.00, the exchange rate prevailing at Dec 31, 2011.
Czech Koruna amounts have been converted into euro at C24.547/1.00, the exchange rate prevailing at Dec 31, 2011.
The above exchange rates are based on the official exchange rates of the Bank of Italy.
Source: Ministry of Economy and Finance
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