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Italy has lowest share of public debt held by non-residents

by Claudio Celio

Government Debt: share hold by non-domestic investors in 2014 in 7 Eurozone Countries

% of Public Debt (Source: IMF, ECB, UE Commission)

Italy has the lowest share of public debt held by non-residents of all eurozone countries.
According to data from the Bank of Italy, in 2014 the share of public debt detained by foreigners has dropped to 35.6%. This is well below the levels of 2006, when 51.4% of national debt was held in foreign hands.

The 're-nationalization' of Italian debt happened quite rapidly. It took place during the past three years, following the sovereign debt crisis.

At the end of 2013, foreign investors held 36% of Italian securities, down slightly from a year earlier (37%). This result was achieved despite the fact that - after three years marked by significant divestitures - foreign investors have bought €13 billion worth of Italian securities in 2013.

In Germany and France non-residents hold, respectively, 62.4% and 62.9% of national public debt. In Spain, which like Italy experienced a sharp sovereign debt crisis in 2011-2012, the share of public debt held by foreign investors is at 43.4%.