Bond Italia 4% ( US465410BZ07 ) in USD

Italia

70.92 % ▼

Italy

US465410BZ07 ( in USD )

4% per year ( payment 2 times a year)

16/10/2049

Prospectus brochure of the bond Italy US465410BZ07 en USD 4%, maturity 16/10/2049

465410BZ0

17/04/2026 ( In 173 days )

Italy is a country in Southern Europe with a diverse geography encompassing the Alps, Apennine Mountains, and extensive coastlines, known for its rich history, art, culture, and cuisine.

The Bond issued by Italia ( Italy ) , in USD, with the ISIN code US465410BZ07, pays a coupon of 4% per year.
The coupons are paid 2 times per year and the Bond maturity is 16/10/2049

PROSPECTUS
Filed pursuant to Rule 424(b)(4)
1OCT201909104750
US$7,000,000,000
The Republic of Italy
US$2,500,000,000 2.375% Notes due 2024
US$2,000,000,000 2.875% Notes due 2029
US$2,500,000,000 4.000% Notes due 2049
The Republic of Italy
Italy is a foreign sovereign government. It is a founding member of the European Union and one of 19 countries included in the European
Economic and Monetary Union.
The economy of Italy, as measured by 2018 gross domestic product, is the eighth largest in the world.
The Notes
The Republic of Italy is offering $7,000,000,000 in aggregate principal amount of its US$2,500,000,000 2.375% notes due 2024 (the ``2024
Notes''), US$2,000,000,000 2.875% notes due 2029 (the ``2029 Notes''), and US$2,500,000,000 4.000% notes due 2049 (the ``2049 Notes'', together
with the 2024 Notes and the 2029 Notes, the ``Notes'').
The Notes will be direct, general and unconditional obligations of the Republic of Italy and will rank pari passu with all other unsecured
and unsubordinated obligations of Italy.
The Notes will contain collective action clauses with provisions regarding future modifications to their terms. Under those provisions, which
are described beginning on page 56 of this Prospectus, modifications affecting the reserved matters listed in the Notes, including modifications to
payment and other important terms of the Notes, may be made with the consent of the holders of 75% of the aggregate principal amount of the
outstanding Notes.
Interest on the Notes will accrue from October 17, 2019 and be payable on April 17 and October 17 of each year, commencing on
April 17, 2020.
The 2024 Notes, the 2029 Notes, and the 2049 Notes will be redeemed at 100% of their principal amount on October 17, 2024,
October 17, 2029, and October 17, 2049, respectively.
The Notes will be deposited on October 17, 2019 (the ``Closing Date'') with Citibank, N.A. as custodian for, and registered in the name of
Cede & Co. as nominee of, The Depository Trust Company (``DTC'') for the accounts of its participants including Clearstream Banking, soci´
et´
e
anonyme and Euroclear Bank S.A./N.V.
Proposed Trading Format
Application has been made for the Notes to be admitted to the official list and trading on EuroMOT (Mercato Telematico Eurobbligazioni).
Application has been made for the Notes to be admitted to the official list and trading on the Regulated Market of the Luxembourg Stock
Exchange in accordance with the rules thereof.
Per 2024 Note
Total
Per 2029 Note
Total
Per 2049 Note
Total
Public Offering Price(1) . . . . . . . . .
99.719%
$2,492,975,000
99.089%
$1,981,780,000
99.619%
$2,490,475,000
Underwriting Discount(2) . . . . . . . .
0.125%
$3,125,000
0.175%
$3,500,000
0.250%
$6,250,000
Proceeds to Italy (before expense)(1) .
99.594%
$2,489,850,000
98.914%
$1,978,280,000
99.369%
$2,484,225,000
(1)
Plus accrued interest, if any, from and including October 17, 2019.
(2)
Italy has agreed to indemnify the Underwriters against certain liabilities, including liabilities under the U.S. Securities Act of 1933.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense.
Joint Bookrunners
Barclays
HSBC
J.P. Morgan
Co-Managers
BNP Paribas
BofA Merrill Lynch
Citigroup
Cr´
edit Agricole
Deutsche Bank
Goldman Sachs International Bank
Morgan Stanley
Natwest
Nomura
MPS Capital Services
Soci´
et´
e G´
en´
erale Corporate &
Unicredit
Investment Banking
The date of this Prospectus is October 10, 2019.

No person has been authorized to give any information or to make any representations other than
those contained or incorporated by reference in this Prospectus, and, if given or made, such
information or representations must not be relied upon as having been authorized. This Prospectus
and any other documents incorporated by reference herein do not constitute an offer to sell or the
solicitation of an offer to buy any securities other than the securities to which they relate or an offer
to sell or the solicitation of an offer to buy any such securities in any circumstances in which such
offer or solicitation is unlawful. Neither the delivery of this Prospectus and any other documents
incorporated by reference herein nor any sale made hereunder shall, under any circumstances, create
any implication that there has been no change in the affairs of the Republic of Italy since the date
hereof or that the information contained or incorporated by reference herein is correct as of any time
subsequent to its date.

TABLE OF CONTENTS
ABOUT THIS PROSPECTUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
FORWARD-LOOKING STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
DEFINED TERMS AND CONVENTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
DATA DISSEMINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
SUMMARY OF THE OFFERING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
RECENT DEVELOPMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
REPUBLIC OF ITALY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40
Area and Population . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40
Government and Political Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43
The European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45
Membership of International Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
THE ITALIAN ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
Key Measures related to the Italian Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Gross Domestic Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57
Principal Sectors of the Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58
Role of the Government in the Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59
Employment and Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
Prices and Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
66
Social Welfare System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
MONETARY SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69
Monetary Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69
Exchange Rate Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72
Banking Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72
Risk-Based Capital Requirements and Solvency Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76
Equity Participations by Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
Measures to assess the condition of Italian Banking System . . . . . . . . . . . . . . . . . . . . . . . . . .
79
Atlante Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
Credit Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
82
Exchange Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
82
THE EXTERNAL SECTOR OF THE ECONOMY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83
Foreign Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83
Geographic Distribution of Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
85
Balance of Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
87
Current Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
88
Capital Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
89
Financial Account and the Net External Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
89
Reserves and Exchange Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
92
PUBLIC FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
94
The Budget Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
94
European Economic and Monetary Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
95
Accounting Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97
Measures of Fiscal Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97
The 2017 Economic and Financial Document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
99
The Update of the 2017 Economic and Financial Document . . . . . . . . . . . . . . . . . . . . . . . . . .
101
The 2018 Economic and Financial Document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
103
The Update of the 2018 Economic and Financial Document . . . . . . . . . . . . . . . . . . . . . . . . . .
106
Revenues and Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
108
Expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
110
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
111
Government Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
113

PUBLIC DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
114
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
114
Summary of Internal Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
118
Summary of External Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
120
Debt Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
121
DESCRIPTION OF THE NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
122
The Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
122
Nature of Obligation; Negative Pledge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
123
Additional Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
123
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
123
Form, Denomination and Registration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
124
Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
125
Definitive Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
125
Further Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
126
Default; Acceleration of Maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
126
Redemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
126
Meetings and Quorum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
127
Voting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
127
Proposals, Amendments and Waivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
128
Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
129
Governing Law; Consent to Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
129
GLOBAL CLEARANCE AND SETTLEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
131
The Clearing Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
131
Initial Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
133
Secondary Market Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
133
Registrar and Paying Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
134
TAXATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
135
United States Tax Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
135
Italian Tax Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
136
Common Reporting Standard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
138
UNDERWRITING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
139
OFFICIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
142
VALIDITY OF THE SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
142
AUTHORIZED REPRESENTATIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
142
GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
143
WHERE YOU CAN FIND MORE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
143
TABLES AND SUPPLEMENTARY INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
145

ABOUT THIS PROSPECTUS
This Prospectus provides you with basic information about Italy and a description of the Notes
Italy will offer. Italy has not authorized anyone to provide you with information different from that
contained in these documents.
This Prospectus neither constitutes a prospectus pursuant to Part II of the Luxembourg Prospectus
Law implementing the Prospectus Directive nor a simplified prospectus pursuant to Part III of the
Luxembourg Prospectus Law. Accordingly, this Prospectus does not purport to meet the format and the
disclosure requirements of the Prospectus Directive and Commission Regulation (EC) No. 809/2004 (as
amended), and it has not been, and will not be, submitted for approval to any competent authority
within the meaning of the Prospectus Directive and, in particular, to the Luxembourg Commission de
Surveillance du Secteur Financier, which is the Luxembourg competent authority for the purpose of the
Prospectus Directive and one of the competent authorities under the Luxembourg Prospectus Law. The
Notes, issued pursuant to this Prospectus, will therefore not qualify for the benefit of the single
European passport pursuant to the Prospectus Directive.
The distribution of this Prospectus and the offering of the Notes in certain jurisdictions may be
restricted by law. Persons who come into possession of this Prospectus should inform themselves about
and observe any such restrictions. This Prospectus does not constitute, and may not be used in
connection with, an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation
is not authorized or in which the person making such offer or solicitation is not qualified to do so or to
any person to whom it is unlawful to make such offer or solicitation. See ``Underwriting.''
Italy accepts responsibility for the information contained in this Prospectus. To the best of the
knowledge and belief of Italy (which has taken all reasonable care to ensure that such is the case), the
information contained in this Prospectus is in accordance with the facts and does not omit anything
likely to affect the import of such information.
As used in this Prospectus, references to ``$'', ``US$'', or ``dollars'' are to the legal currency of the
United States of America.
Enforcement of civil liabilities
Italy is a foreign sovereign government. Consequently, it may be difficult for investors to obtain or
realize upon judgments of courts in the United States against Italy. We will irrevocably submit to the
jurisdiction of the Federal and State courts in The City of New York and will irrevocably waive any
immunity from the jurisdiction of such courts, to the extent permitted by Italian law, but not execution,
attachment or process in the nature thereof. We will waive any objection to venue, in connection with
any action arising out of or based upon the Notes brought by any holder of the Notes. We reserve the
right to plead sovereign immunity under the United States Foreign Sovereign Immunities Act of 1976
with respect to actions brought against it under United States Federal securities laws or any state
securities laws. In the absence of a waiver of immunity by Italy with respect to these actions, it would
not be possible to obtain a United States judgment in such an action against Italy unless a court were
to determine that we are not entitled under the Immunities Act to sovereign immunity with respect to
such action. Enforceability in Italy of final judgments of U.S. courts obtained in actions based on the
civil liability provisions of the U.S. federal securities laws is subject, among other things, to the absence
of a conflicting final judgment by an Italian court or of a previously instituted action pending in Italy
among the same parties and arising from the same facts and circumstances and to the Italian courts'
determination that the U.S. courts had jurisdiction, that process was appropriately served on the
defendant, and that enforcement would not violate Italian public policy. In general, the enforceability in
Italy of final judgments of U.S. courts obtained would not require retrial in Italy. In original actions
brought before Italian courts, there is doubt as to the enforceability of liabilities based on the U.S.
federal securities laws. The Italian courts may enter and enforce judgments in foreign currencies. See
also ``Description of Debt Securities--Governing Law; Consent to Service.''
1

FORWARD-LOOKING STATEMENTS
Forward-looking statements can generally be identified by the use of terms such as ``will'', ``may'',
``could'', ``should'', ``would'', ``expect'', ``intend'', ``estimate'', ``anticipate'', ``believe'', ``continue'',
``project'', ``aim'' or other similar terms. These forward-looking statements include, but are not limited
to, statements relating to:
· Italy's goals and strategies;
· potential changes to Italy's legal and regulatory frameworks at the national, regional or
municipal level, as well as changes to the European Union's legal, regulatory, and banking
frameworks;
· the expected timing of proposed legislation and Italy's ability to effectively implement such
legislation;
· the aims of certain legal, regulatory, and economic measures, and the impact of such measures
on Italy's political and macroeconomic results and outlook, including with respect to projected
government spending, economic growth, national, regional, municipal or local taxation levels,
and deficit reductions;
· expected or potential improvements to Italy's banking system and corporate governance
regulations;
· forecasts in respect of Italy's economy, including GDP growth, debt-to-GDP ratios and pension
expenditures, as well as Italy's implementation of the related government-designed policies;
· Italy's public finance objectives, macroeconomic and finance indicators forecasts, and the
potential financial impact of the 2018 National Reform Programme;
· Italy's ability to reduce its net borrowing, net structural borrowings, primary balances and public
debts, and the expected timing of such reductions;
· potential or expected improvements in Italy's capital position and capital ratios;
· Italy's ability to increase its revenues through its proposed privatization program, and the
expected timing thereof;
· certain terms of bonds which may be potentially issued by Italy;
· Italy's inclusion in the European Financial Stability Facility and the European Stability
Mechanism, Italy's maximum commitment to such programs, and the expected timing of
financings to any requesting countries; and
· the availability of funding for European Union members from the European Central Bank,
including through its asset-backed securities, covered bonds and euro-denominated securities
purchase programs.
Those statements are or will be based on plans, estimates and projections that are current only as of
the original date of release by the Italian Government of those budgetary papers and speak only as of
the date they are so made. The information included in those budgetary papers may also have changed
since that date. In addition, these budgets are prepared for government planning purposes, not as
future predictions, and actual results may differ and have in fact differed, in some cases materially,
from results contemplated by the budgets or other forward-looking statements. Therefore, those
forward-looking statements are not a guarantee of performance and you should not rely on the
information in those budgetary papers or forward-looking statements. If the information included in
this Prospectus differs from the information in those budgetary papers or forward-looking statements,
you should consider only the most current information included in this Prospectus, any amendments
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hereto and exhibits hereto. Certain figures regarding prior fiscal years have been updated to reflect
more recent data that were not previously available. You should read all the information in this
Prospectus.
There are important factors that could cause actual outcomes to differ materially from those
expressed or implied in the forward-looking statements. These factors include, but are not limited to:
· External factors, such as:
· interest rates in financial markets outside Italy;
· present and future exchange rates of the Euro;
· the impact of changes in the credit rating of Italy;
· the impact of changes in the international prices of commodities; and
· the international economy, and in particular the rates of growth (or contraction) of Italy's
major trading partners, including the United States.
· Internal factors, such as:
· general economic and business conditions in Italy;
· the level of public debt, domestic inflation and domestic consumption;
· the ability of Italy to effect key economic reforms;
· increases or decreases in Italy's labor force participation and productivity;
· the level of budget deficit and investments;
· the strength of the banking sector;
· the level of inventories; and
· the level of foreign direct and portfolio investment.
Except as otherwise specified, all amounts are expressed in euro (``euro''). See ``External Sector of
the Economy--Reserves and Exchange Rates--U.S. Dollar/Euro Exchange Rate'' for certain
information concerning the exchange rate of the euro against the U.S. dollar and certain other
currencies. We make no representation that the euro amounts referred to in this Prospectus could have
been converted into U.S. dollars at any particular rate.
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DEFINED TERMS AND CONVENTIONS
We use terms in this Prospectus that may not be familiar to you. These terms are commonly used
to refer to economic concepts that are discussed in this Prospectus. Set forth below are some of the
terms used in this Prospectus.
· Cross Series Amendment means an amendment involving (i) any series of debt securities or any
agreement governing the issuance or administration of such series, and (ii) the debt securities of
one or more other series or any agreement governing the issuance or administration of such
other debt securities.
· Cross Series Proposal means a proposal or matter for consideration affecting or concerning
(i) any series of debt securities or any agreement governing the issuance or administration of
such series, and (ii) one or more other series of debt securities or any agreement governing the
issuance or administration of such other series of debt securities.
· Encumbrance means any mortgage, charge, pledge, lien or other arrangement creating security
other than (i) any Encumbrance on goods or other assets provided to or acquired by Italy and
securing a sum of Public External Indebtedness not greater than the purchase price (together
with interest and other related charges) of such goods or assets and any related services; or
(ii) any Encumbrance securing or providing for the payment of Public External Indebtedness
incurred in connection with any Project Financing provided that such Encumbrance applies only
to (a) assets which are the subject of such Project Financing or (b) revenues or claims which
arise from the operation, failure to meet specifications, exploitation, sale or loss of, or failure to
complete, or damage to, such properties.
· Gross domestic product or GDP means the total value of products and services produced inside a
country during the relevant period.
· Imports and Exports. Imports are goods brought into a country from a foreign country for trade
or sale. Exports are goods taken out of a country for trade or sale abroad. Data on imports and
exports included in this Prospectus are derived from customs documents for non-European
Union countries and data supplied by other Member States of the European Union.
· Index Linked Obligation means a debt security that provides for the payment of additional
amounts linked to changes in a published index, but does not include a component part of an
Index Linked Obligation that is no longer attached to that Index Linked Obligation.
· The unemployment rate is calculated as the ratio of the members of the labor force who register
with local employment agencies as being unemployed to the total labor force. ``Labor force''
means people employed and people over the age of 16 looking for a job. The reference
population used to calculate the Italian labor force in this Prospectus consists of all household
members present and resident in Italy and registered with local authorities.
· The inflation rate is measured by the year-on-year percentage change in the general retail price
index, unless otherwise specified. The European Union harmonized consumer price index
(``HICP'') is calculated on the basis of a weighted basket of goods and services taking into
account all families resident in a given territory. Year-on-year rates are calculated by comparing
the average of the twelve monthly indices for the later period against the average of the twelve
monthly indices for the prior period.
· Net borrowing or government deficit is consolidated revenues minus consolidated expenditures of
the general government. This is the principal measure of fiscal balance for countries
participating in the European Economic and Monetary Union and is calculated in accordance
with the EU Protocol on Excessive Deficit Procedure, which implements the European System
of Accounts (``ESA2010'').
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· Net borrowing-to-GDP or deficit-to-GDP means the ratio of net borrowing or government deficit
to nominal GDP.
· Debt-to-GDP means the ratio of public debt to nominal GDP. Public debt includes debt incurred
by the central government (including Treasury securities and borrowings), regional and other
local government, public social security agencies and other public agencies.
· Primary balance is net borrowing less interest payments and other borrowing costs of the general
government. The primary balance is used to measure the effect of discretionary actions taken to
control expenditures and increase revenues.
· Project Financing means any arrangement for the provision of funds which are to be used solely
to finance a project for the acquisition, construction, development or exploitation of any assets
pursuant to which the persons providing such funds agree that the principal source of repayment
of such funds will be the project and the revenues (including insurance proceeds and contractual
claims) generated by such project.
· Public External Indebtedness means all indebtedness of Italy in the form of bonds, notes,
debentures or other securities issued by Italy on international markets (but for the avoidance of
doubt, excluding any such securities issued exclusively in Italy) that are or were intended to be
quoted, listed or traded on any securities exchange or other securities market.
· Reserved Matters are:
· change the due date for the payment of the principal, premium or any installment of
interest on the outstanding Notes;
· reduce any amount, including any overdue amount, payable on the outstanding Notes;
· change the method used to calculate any amount payable on the outstanding Notes;
· reduce the redemption price for the outstanding debt securities or change any date on
which the outstanding Notes may be redeemed;
· change the currency in which interest, premium or principal will be paid or the places at
which interest, premium or principal of the outstanding Notes is payable;
· impose any condition on or otherwise modify our obligations to make payments on the
outstanding Notes;
· except as permitted by any related guarantee, release any guarantee issued in relation on
the outstanding Notes or change the terms of that guarantee;
· except as permitted by any related security agreement, release any collateral that is pledged
or charged as security for the payment on the outstanding debt securities or change the
terms on which that collateral is pledged or charged;
· change any payment related circumstance under which the outstanding debt securities may
be declared due and payable prior to their stated maturity;
· change the seniority or ranking of the outstanding Notes;
· change the governing law provision of outstanding Notes;
· change the courts to the jurisdiction of which we have submitted, our obligation under the
fiscal agency agreement or the terms and conditions of the Notes to appoint and maintain
an agent for service of process or our waiver of immunity in respect of actions or
proceedings brought by any holder based upon a Note;
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· change the principal amount of outstanding Notes or, in the case of a Cross Series
Amendment and/or Cross Series Proposal, the principal amount of outstanding debt
securities of any other series required to approve a proposed amendment in relation to the
outstanding debt securities, the principal amount of outstanding debt securities required for
a quorum to be present, or the rules for determining whether a debt security is outstanding
for these purposes; or
· change the definition of Reserved Matters.
Unless otherwise indicated, we have expressed:
· all annual rates of growth as average annual compounded rates;
· all rates of growth or percentage changes in financial data in constant prices adjusted for
inflation; and
· all financial data in current prices.
Amounts included in this Prospectus are normally rounded. In particular, amounts stated as a
percentage are normally rounded to the first decimal place. Totals in certain tables of this Prospectus
may differ from the sum of the individual items in such tables due to rounding.
Information Sources
The source for most of the financial and demographic statistics for Italy included in this Prospectus
is data prepared by Istituto Nazionale di Statistica, or ISTAT, an independent Italian public agency that
produces statistical information regarding Italy (including GDP data), in particular financial and
demographic statistics for Italy published in the Annual Report of ISTAT dated May 16, 2018 and
appendices thereto (together the ``2018 ISTAT Annual Report'') and elaborations on such data and
other data published in the Annual Report of the Bank of Italy (Banca d'Italia, Italy's central bank)
dated May 29, 2018 and appendices thereto (together the ``2018 Bank of Italy Annual Report'') and in
the Annual Report of the Bank of Italy dated May 30, 2019 and appendices thereto (together the
``2019 Bank of Italy Annual Report''). We also include in this Prospectus information published by the
Statistical Office of the European Communities or Eurostat.
Certain other financial and statistical information contained in this Prospectus has been derived
from other Italian Government sources, including: (i) the economic and financial document of 2018
(Documento di Economia e Finanza 2018), dated April 26, 2018 (the ``2018 Economic and Financial
Document''), which includes the 2018 stability programme (the ``2018 Stability Programme'') and the
2018 national reform programme (the ``2018 National Reform Programme''); (ii) the update of the
2018 Economic and Financial Document (Nota di Aggiornamento del Documento di Economia e Finanza
2018), dated September 30, 2018 (the ``Update of the 2018 Economic and Financial Document''); and
(iii) the report on public debt in 2017 (Rapporto sul Debito Pubblico 2017), dated July 26, 2018 (the
``2018 Report on Public Debt'').
On April 9, 2019, the Italian Government published the economic and financial document of 2019
(Documento di Economia e Finanza 2019) (the ``2019 Economic and Financial Document'', which
includes the 2019 stability programme (the ``2019 Stability Programme'') and the 2019 national reform
programme (the ``2019 National Reform Programme''). On July 26, 2019, the Italian Government
published the report on public debt in 2018 (Rapporto sul Debito Pubblico 2018) (the ``2019 Report on
Public Debt''). On September 30, 2019, the Italian Government published the update of the 2019
Economic and Financial Document (Nota di Aggiornamento del Documento di Economia e Finanza
2019) (the ``Update of the 2019 Economic and Financial Document'').
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