Derivatives contracts of public entities: characteristics and purpose
After a brief description of the major pros and cons that emerged in the past concerning transactions in derivatives undertaken by general government, the Focus emphasises that irregularity in the publication of information on such contracts may have increased the uncertainty surrounding this phenomenon.
The Focus reviews the available data on contracts entered into by central and local governments before briefly discussing the evolution of regulations governing the use of these financial instruments by local governments and focusing on recent changes in the statistical treatment of derivatives in the public accounts. Finally, the potential effects of the rule on bilateral guarantees introduced with the 2015 Stability Act are analysed.
Text of document (in Italian)
