BTP Valore

What are BTP People and why it will be easier to buy them

Something new is coming for small Italian savers.
The executive has decided to encourage the purchase of BTP People, these are government bonds designed for small savers.
These financial instruments boast some specific tax breaks to encourage citizens to undertake an investment in this type of financial product.
What are BTP People In general, BTP are medium-long term bonds, issued by the Italian State to finance public spending and investments.
Usually their duration ranges from a minimum of 18 months to a maximum of 50 years.
The Btp People are positioned in this situation, the name speaks clearly because it is precisely ordinary people that these financial instruments are aimed at.
These are securities that are aimed at small consumers due to their particularly low denomination and short-term returns.
When the bond expires, the State reimburses the initial capital.
The profit for investors comes from the interest that is paid through the payment of coupons throughout the life of the security and, in some specific cases, a final premium if the financial instrument is held until maturity.
An example is the Btp Valore which in 2023 reached record levels thanks to two issues by the Ministry of Economy and Finance.
The title raised a total of 35.2 billion euros.
Specifically, the first issue in June totaled 18 billion euros and the second in October, however, 17 billion euros.
These figures were a positive signal for the executive who chose to invest in this type of securities and target small savers.
The objectives of the Btp People With regard to the Btp People it can be stated that one of the main objectives concerns the strengthening of the economic stability of the country, in fact, thanks to these instruments the State could reduce the use of external loans.
Consequently, the creation of a "domestic" debt would be achieved thanks to citizens' purchases.
Furthermore, the Minister of Economy and Finance Giancarlo Giorgetti explained, on the occasion of the outcome of the placement of the Btp Valore, that the appreciation of retail customers is a sign of trust towards the State.
Giorgetti said: “It is very important for international investors who finance public debt.
If the Italians believe it, they believe it too." Why it will be easier to buy BTP People A rule has been included in the 2024 Budget Law which aims to exclude government bonds from the ISEE calculation.
This is an important innovation which is aimed at encouraging citizens in the process of purchasing these products.
The size in question is included in the family package.
This is a measure announced by the Minister for Family, Birthrate and Equal Opportunities Eugenia Roccella.
Specifically, in article 39 it is possible to identify the exclusion of government bonds from the calculation of the Equivalent Economic Situation Indicator.
Currently, purchases of government bonds contribute to the formation of the assets which are used to partially determine the value of the ISEE.
This is an incentive for small savers who want to invest in low-risk, high-yield BTPs thanks to their longer duration, fixed interest rate and reimbursement of invested capital guaranteed by the State.
We remind you that the BTP People within the ISEE fell under a specific heading, namely: «Italian government bonds, bonds, certificates of deposit and credits, interest-bearing bonds, as well as the value of current accounts, shares or units of investment organizations collective savings (OICR) Italian or foreign, shareholdings in Italian and foreign companies listed on regulated markets and more".

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