Novelty BTP Valore and BTP Italia, BTP and BOT auctions in 2024, but also the comment of the minister Giancarlo Giorgetti on the NO Mes vote of the Chamber.
Protagonist of today, Friday 22 December 2023, it is the Mef, Ministry of Economy and Financewhich published the government bond auction calendar and the 2024 public debt management guidelines.
From the document we learned that the Mef still intends to focus on the BTP Valore.
The Treasury, we read, “will evaluate the opportunity to carry out one or more BTP Value issuesnext year, “reserving maximum discretion in evaluating the most appropriate financial structure in relation to the maturity, type and frequency of payment of the coupons and the final extra loyalty reward.
There were two issues of the BTP Valore during 2023, “in the months of June and October, for a total amount equal to over 35 billion, experiencing widespread appreciation on the market.” This is what we read in the dedicated section to the news on Italy’s public debt in 2024.
No MES Camera, Giorgetti makes the comparison with the Stability Pact
Highlighted today are the statements released by Minister of Economy and Finance Giancarlo Giorgetti as a comment on yesterday’s vote, with which the Chamber decided to say no to the ratification of the ESM reform.
A decision that shook Italian politics, sparking a heated debate on what the consequences of the great refusal could be.
Also to express their opinion on that vote Europewhich did not hide the burning decision for Italy’s failure to ratify the reform of the European Stability Mechanism, which confirms how the whole block is hostage to Rome.
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“As Minister of Economy and Finance I was interested in the ESM being approved, for economic and financial reasons. But as the debate has developed in recent days, it seemed clear to me that there was no air of approving it, even for non-economic reasons”. Thus the minister Giancarlo Giorgetti, questioned by journalists on the sidelines of the approval of the maneuver in the Senate.
Giorgetti thus responded to the wishes of the opposition, in particular the PD, which yesterday called for his resignation: “The advice of the opposition is always useful, but then let me decide.”
Regarding the doubts of the opposition themselves but also of various economists on that Stability and Growth Pact on which the EU finance ministers reached agreement, the head of the Treasury gave some advice:
“Read it well – he told journalists – You will find that it is better than it seems.”
Returning to the ESM, the Treasury holder also underlined that “everything can be improved, even the ESM”, pointing out that “these Treaties were made in certain historical periods” and that, consequently, “history may require other types of responses”.
In this regard, the minister chose to make a comparison precisely with the Stability Pact on which the EU finance ministers reached an agreement at the extraordinary Ecofin meeting two evenings ago.
“Even the Stability Pact, why has it changed? Because when that old Pact was made there was a totally different situation and today, there is a need for change, also due to the ambitions that Europe has”.
“For example – continued Giorgetti – the relevant factor ofexclusion of defense investments, an Italian request, only two years ago seemed unrealistic. Today it has become reality, because we realized that in Europe we must also think about security.”
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BTP Value: how many issues from the Treasury in 2024?
Giorgetti’s Mef also highlighted itself today with the publication of public debt management guidelines 2024.
With those guidelines the Treasury has announced that it will evaluate the possible issue of other BTP Valoregovernment bonds dedicated exclusively to retail investors, the maximum expression of the appeal “more BTPs in the hands of Italians” launched by the Prime Minister Giorgia Meloni herself, which were so successful in the two editions launched during 2023.
In the Guidelines it was underlined that “this new class of securities can have different financial structures and in 2024, where the conditions are met and based on financing needs, the Treasury will evaluate the opportunity to carry out one or more issues of BTP Valore, reserving maximum discretion in evaluating the most appropriate financial structure close to the placement regarding the maturity, type and frequency of payment of the coupons and the final extra loyalty bonus, reserved for retail investors who purchase the security upon issue and hold it until maturity ”.
The Treasury highlighted the success of the BTP Valore by underlining that, “during the next year, in consideration of theexcellent feedback received from the market on emissions dedicated to the public of retail savers, the Treasury will continue to propose these instruments, also taking into account the general context of higher interest rates compared to the recent past”.
BTP Italia: the point on 2023 and the issues of 2024
Regarding the BTP Italia, the Mef recalled that, during 2023, in consideration of the inflationary dynamics, “the Treasury has maintained its commitment to providing retail savers an instrument of protection against inflationand, helping to broaden the interest in direct participation in public debt by a growing number of small savers”.
As a result, in 2023 it was carried out an issue of BTP Italia, for a total amount of almost 10 billion.
“Considering the redemptions of three securities maturing during the year for a total amount of approximately 25 billion and the exchange operations that affected the sector, net emissions were largely negative,” the Mef specified, adding that “in 2024 two Italian BTPs will mature for a total of approximately 12 billion euros”.
In this context, “taking into account the volumes expiring, in order to continue to satisfy the demand of institutional and retail investors and to provide a now consolidated tool for protecting their savings, the Treasury will evaluate the opportunity to carry out one or more issues of BTP Italia during the yearreserving maximum flexibility in choosing the most appropriate deadline for the new title”.
“In any case – we read in the 2024 Debt Management Guidelines document – any securities offered during the next year will maintain indexation linked to the national inflation rate and a loyalty bonus for retail investors who purchase the security upon issue and hold it until maturity”.
The Treasury also announced that, as has happened in recent years, “it reserves the right to investigate further the possibility of resorting to extraordinary operations for the management of maturing BTP Italia amounts in subsequent years, through repurchase or exchange operations, evaluating the most efficient method for their execution”.
“Such operations can also be used to provide adequate support for the liquidity and efficiency of the secondary market of the securities of this segment should market conditions arise that require intervention in this direction”.
LAWS
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BTP Valore or Meloni bet ‘More government bonds for Italians’
Returning to the BTP Valore, at the end of November, on the occasion of the Question Time in the Chamber, it was Prime Minister Giorgia Meloni herself who returned to flaunt the success of that BTP, which for many would be proof of that sovereignist BTP, or even autarkic BTP, which was much talked about at the end of last year, promoted above all by the League. A BTP whose objective was to channel the savings risk of Italians towards public debt, at a time when Italy and its government bonds were preparing to receive one of the first welcomes from the ECB by Christine Lagarde.
“With all due respect, please note that I’m not saying this – said Giorgia Meloni, replying to the leader of Italia Viva Matteo Renzi – I think it is clear to everyone how in recent months the confidence, for example, of investors and of markets in the Italian economy. With all due respect, I think the promotion of four rating agencies that are usually not ‘good’, so to speak, on these matters and the fact that families very willingly buy our government bondsthat the spread is at its lowest for a long time and that the Italian stock market is growing more than all the other European stock exchanges are growing are data that say something more than the assessments – legitimate, obviously – of the opposition”.
It must be said that the patriotic appeal to the Italians, conceived to encourage savers to act following their love of country to save the state coffers, it had also been launched in recent years by the number one of Consob, Paolo Savona.
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The enthusiasm with which the Italians responded to the appeal of Meloni and the Treasury was such that a provision was also included in the budget law aimed at excluding BTPs and government bonds from the ISEE calculation, in line with the government’s desire to bet more and more sui BTP People.
Very good both editions of the BTP Value of this 2023. The first edition of the BTP Valore, which started on June 5th and ended on June 9th, ended with a total amount subscribed exceeding 18 billion euroscompared to 654,675 contracts concluded.
The average value of the contract was 27,786 euros. The final annual rates have been confirmed al 3,25% for the 1st and 2nd year e al 4,00% for the 3rd and 4th year.
The second edition of the BTP Valore, launched in the days between 2 and 6 October, ended with a subscribed amount exceeding 17 billion.
The Mef confirmed the definitive coupon ratesnot revising upwards the minimum coupon rates previously disclosed.
For the first, second and third years, the rates have been confirmed al 4,10%, while for the fourth and fifth year we arrive al 4,50%.
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