Fresh money from the ECB

Tomorrow is an important date for the ECB. Two operations will came to maturity:.

The first one is the MRO, reference 20100117, amount 179,69410 bn Euro.
The second one is a LTRO, reference 20100118, amount 63,61772 bn Euro.
The ECB informs us, through its website, that the MRO will be renewed for the amount of 197,2832 bn Euro, and the LTRO  will be renewed for the amount of 68,06642 bn Euro.

The liquidity in the monetary system, due to the MROs, is at its high since 21st July 2010.
The liquidity in the monetary system, due to the LTROs, is at its high since 10th November 2010.

It seems that the banks need money in the short term. They won't to run out of cash during the Xmas holidays and the end of the year.

Since tomorrow, the banks have 22,037 bn Euro of EASY MONEY to count on, for their affairs.

Key dates for Italian debt

The month of December 2010 will be very important for the italian politics and finance.
Probably, on Decembre 14th 2010, one or both the branches of the Parliament will deny the trust vote to the Government and in the following days there will be a new technical Government.

I expect that the italian public debt will come under attack even if this political crisis does not changes the italian finances. The attacks is not because the maket likes this Government.


The current Government, as certified by Eurostat, has taken ZERO actions to reduce the debt, grown from 1.763,559 ml Euro (Dec/2009) to 1.844,817 ml Euro (Sep/2010).
The key figures of the italian balance will be the same as today also with a new government.
THE MARKET HATES UNCERTAINTY, AND PARTICULARLY IN THIS DAYS LIKES TO AMLPLIFY THE INTERNAL COUNTRY PROBLEMS.

In the last 15 days of December 2010 there are not big placement of italian debt.
The key dates are the 13th and the 23rd December 2010 when will be placed two BOT.
I expect that the new emissions will replace the three BOT that will came to maturity on 15th and 31st December for a total amount of 17.175 ml Euro.

Also the month of January 2011 will not be a key month for the italian debt.
The "Dipartimento del tesoro" reports that in January 2011 will come to maturity BOT for an amount of 17.402 ml Euro. No other bonds will come to maturity in January 2011.

February 2011 will be the first  critical month.
The "Dipartimento del tesoro" reports that bonds for a nominal value of 38.156 ml Euro will come to maturity and March will be event worse with 47.788 ml Euro.

In September 2011 will come to maturity more than 60 bn Euro of Italian Treasury Bond.

I think that until the end of January 2011 there will be no major problem for Italy, maybe there will be minor problem due to speculation but since February 2011 Italy could face major a critical situation.

As reported by "Banca d'Italia", the 44% of the italian debt is owed "out of Italy" and the 56% is owed by italian financial istitution.
Italian people has the HIGHEST PRIVATE SAVINGS RATE IN THE WORLD that in 2007 was evaluated about 750 bn Euro, about the 50% of the current public debt. The private savings does not include stocks, real estates, etc...