Italy has covered 77 percent of 2011 debt needs: source

aly has covered around 77 percent of its debt issuance needs for this year and will look to issue about a further 100 billion euros in short-term bills and bonds by the end of the year, a treasury source said on Monday.

The source, who spoke on condition of anonymity, said the euro zone’s third largest economy did not need to roll-over all of its maturing debt, citing good liquidity reserves.

Italy — seen as too big to fail and too big to bailout — has come under fire in the euro zone’s debt crisis since July, putting pressure on its cost of borrowing on markets.

“The Treasury’s issuance policies have a long-term horizon and they do not hinge on monthly maturities of notes,” the source said in emailed comment.

“Also thanks to a good liquidity reserve.”

Italy has an overall issuance target of around 430 billion euros for this year.

About 121 billion euros of Italian debt securities mature between September and the end of the year, and roughly half of those are short-term treasury bills.

Analysts normally concentrate their attention on medium and long term issuance when looking at Italy’s funding needs.

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