Author: | Published: 1 Feb 2005
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Studio Legale Beltramo


Via Vittorio Veneto 84
Rome 00187


+39 06 481 7747


+39 06 482 0281

Law 311 of December 30 2004, which is the Financial Law for 2005 (the 2005 Financial Law), provides for new limits to capacity of Italian local authorities to enter into loans and bonds.

Such new limits are related to the Patto di Stabilità Interno, that is, the provisions contained in each financial law since 1999 through which local authorities are committed to contribute to the achievement of a general reduction of net indebtness of the Republic of Italy for each relevant fiscal year.

Starting from the fiscal year 2006, loans and bonds entered into/issued by local authorities to finance investments must accompanied by a relevant statement evidencing the achievement by such authorities of the goals of the Patto di Stabilità Interno fixed for the previous fiscal year.

The financing entity or the financial intermediary cannot enter into the relevant loan or the placement of the bonds without the above mentioned statement, which also has to be obtained for the 2005 fiscal year for the provinces and municipalities with a population over 5,000 people.