1987 - Year of the shrinking market?
Whatever international borrowing the Republic of Italy does in 1987 will follow the same pattern as in 1986--the issuing of bonds, at relatively low interest rates, for the re-financing of its much more expensive old loans. Deals of this kind in 1986 amounted to less than $1 billion.
This is part of the general improvement brought about by the fall in oil prices and the fall in the dollar. "There is no comparison with a few years ago,' said Paolo Ranuzzi, director general of the public debt at the Tesoro in Rome.
It is Ranuzzi's job to sort out Italian borrowers, both public and private, into an orderly queue. This used to be an onerous task. "But Italian companies are very liquid now,' Ranuzzi said happily. "They have no need to borrow; they think more of lending.'
Only the Ferruzzi group, with its plans to take over British Sugar, was expecting to issue debenture stock of 278 million in London, at 1/4% over Libor, as part-finance for the takeover. Another 147 million comes from the company's own resources.
Alitalia, now partly privatised, can raise fresh funds by an issue on the Borsa.