DESCRIPTION OF THE BANKING SYSTEM
There are numerous banking offices located throughout the country, with some 830 banks and 29,270 branches performing commercial services at the end of 2001. Among the most impor-tant are Intesa-Bci, San Paolo-IMI, Banca di Roma, Unicredito Italiano, and Banca Nazionale del Lavoro. These banks are a principal source of credit information. The banking sector is undergoing consolidation involving mergers and acquisitions among the major banks. This process is expected to continue over the next several years as the Italian banking sector seeks to become more competitive in the European market.
Several U.S. banks perform services in Italy, through branches, subsidiaries, or representa-tives. Many American banks can also provide their commercial customers with bank reports on overseas buyers, provide assistance for letters of credit, and also foreign exchange. U.S. banks with offices in Italy include Chase, Citibank, Morgan Guaranty Trust, Bank of New York, and Bank of America. There are also numerous smaller, regional banks.
Banks in Italy that have the authority to participate in foreign exchange usually have a U.S. correspondent. Foreign currency transfers and foreign exchange transactions must be channeled via authorized intermediaries (for example, the Bank of Italy or the Italian Foreign Exchange Office). The larger Italian banks usually have branches in one or more U.S. cities.
The Bank of Italy, Italy's central bank, is widely respected both nationally and internationally as a non-political overseer of the Italian economy, responsible for controlling inflation and balance of payments pressures.
FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
Italy has no restrictions on the amount of foreign exchange instruments, currency, or checks that may be brought into the country. Normally, Euro 10,000 may be taken out of the country, but any amount declared upon entry, may be re-exported.
Italian exchange regulations are issued under authority of the Ministry of Foreign Trade by the Italian Exchange Office (Ufficio Italiano dei Cambi--UIC), Via Quattro Fontane 123, Rome 00184, Italy. Foreign currency may be sold or acquired from the Bank of Italy or any of the banks authorized by the Bank of Italy. In effect, all commer-cial banks are authorized to conduct foreign exchange transactions.
Dollar currency, travelers checks, and, in some cases, personal checks, may be exchanged at banks, exchange offices, authorized tourist offices, and hotels. Major credit cards are accepted with proper identification. It is best to first confirm what form of payment is accepted.
GENERAL AVAILABILITY OF FINANCING
Italy has a well-developed banking and credit system with numerous correspondent U.S. banks. Italian banks are subject to close govern-ment super-vision, and the Bank of Italy must authorize the establish-ment of any new bank.
Until 1993, the Italian banking system was divided into two categories, differentiated by length of lending authorized. The Single Banking Law passed in 1993 abolished this division, effectively allowing all Italian banks to lend at any maturity. Due to this historical legacy, those institutions that focused on longer-term lending remain at the forefront for this type of finance. Short-term business and trade finance is available from a wide range of Italian and U.S. banks.
U.S. firms desiring to finance major portions of their capital investment outside the United States may find capital available in the Eurodollar market. U.S. bank branches in Italy can assist in financing capital investment.
HOW TO FINANCE EXPORTS / METHODS OF PAYMENT
When providing the Italian buyer with a price quote, American firms most frequently provide a quote that includes packing costs, insurance, and freight. This is called the c.i.f. price. The average Italian business representative can then usually determine the charges for customs, taxes, and local transportation to arrive at the final landed cost to importer. The customary terms of sale in Italy are either cash or net. Sales made on cash terms call for payment before delivery, on delivery, or shortly after delivery -- usually within 10 days from the date of delivery. A 2 to 5 percent discount is made for payment of the full amount of the transaction at the end of the specified period from 1 to 4 months from the date of the invoice. The length of the period depends on the commodity involved, the credit standing of the buyer, and the motivation of the seller. A period of up to 2 years is often allowed for payment of capital goods, store equipment, trucks, and similar heavy equipment.
Italian firms believe that some American suppliers are too rigid in their payment terms and have thus lost business to other suppliers. Financing is considered as much a competitive factor as the product itself, the delivery date, or after-sales service. While some U.S. manufacturers request payment upon receipt of the goods, it can be a competitive tool to offer terms allowing settlement of the account from 60 to 120 days following receipt of the order.
The use of irrevocable letters of credit for the Italian market has declined appreciably in recent years. Although such instruments are still required by American exporters, especially when the Italian customer's credit reputation is not well known, the growing reluctance of Italian firms to provide letters of credit has required American exporters to utilize other methods to assure payment or lose the sale to other suppliers in the competitive Italian market. The Italian businessperson is reluctant to pay a high fee for a letter of credit when other suppliers or means of payment are available. American firms have put to greater use the export credit in-surance and guarantee programs available through the Foreign Credit Insurance Association (FCIA).
Just as the terms of any sales offer should be presented in a clear and detailed manner, shipments should conform to the contract and to any samples that may have been sent to the Italian importer. Special attention should be given to the prompt observance of agreed delivery schedules, as prompt delivery may be a decisive and possibly an overriding consideration of the importer in placing additional orders. When shipping on letter of credit, all terms specified on the letter of credit must be strictly observed. If the terms are not followed, the letter of credit may not be honored by the bank.
EXPORT FINANCING AND INSURANCE
As a member of the G-7, Italy as a market for U.S. exporters does not warrant any special USG credit assistance. The network of Italian banks with branches in the U.S. will offer limited export credit assistance. Similarly, large U.S. banks and/or local banks located in the exporter's state can offer factoring; exchange fluctuation hedging and limited exporter's credit services. The Export-Import Bank of the United States (Exim Bank) and FCIA consider Italy a low political risk country. Italy is classified as a "rich" country under the OECD rate classification. Small business exporters may obtain assistance under the SBA's Export Revolving Line of Credit (ELRC) loan program.
AVAILABILITY OF PROJECT FINANCING
The Italian government has for decades promoted development in poorer parts of the country, particularly the south, through incentives such as tax reductions and financial assistance for private investment projects. A number of American companies have taken advantage of these incentives over the years to establish facilities in Italy. The government is trying to create a "one office" concept so that potential investors have one place to go for all the information and permits they may require. At present, however, a company seeking information on these incentives should inquire at all of the following agencies:
1. Istituto per la Promozione Industriale, IPI
Viale Maresciallo Pilsudski 124
00197 Rome, Italy
Tel.: +39-06-8097-21
Fax: +39-06-8072-898
info@ipi.it
www.ipi.it
2. Ministero delle Attivita Produttive
(Ministry of Productive Activities)
Direzione Generale per il Coordinamento degli Incentivi alle Imprese, DGCII
(Directorate for Coordination of Enterprise Incentives)
Via del Giorgione, 2/B
00147 Roma
Tel.: +39-06-5401-633
Fax: +39-06-5960-1226
www.minindustria.it
segreteria.pasca@minindustria.it
Prof. Roberto Pasca di Magliano, Dir. Gen.
roberto.pasca@minindustria.it
3. Sviluppo Italia S.p.A.
The National Agency for the development of enterprise and investment development
Via Calabria 46
00187 Rome, Italy
Tel.: +39-06-421601
www.opportunitalia.it
info@sviluppoitalia.it
Ing. Massimo Caputi, Man. Dir.
4. Ministero dell’Economia e delle Finanze
(Ministry of the Economy and Finance)
Dipartimento del Tesoro
(Department of the Treasury)
Via Venti Settembre 97
00187 Roma
Tel.: +39-06-47611
Fax: +39-06-4745-327
Contact: Prof. Domenico Siniscalco, Dir. Gen.
www.tesoro.it
LIST OF BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS
A large number of Italian banks have correspondence relationships with U.S. banks. Below is a listing of Italian banks with branch offices in the U.S.
Sanpaolo IMI S.p.A.
Piazza San Carlo 156
10121 Torino
Tel.: +39-011-5551
www.sanpaoloimi.com
info@sanpaoloimi.com
CEO Area Americas
C/o New York Branch
245 Park Avenue, Suite 3500
New York, NY 10167
Tel.: (212) 692-3010
Fax: (212) 692-3046
persico@sanpaolony.com
Carlo Persico, Manager
444 South Flower Street
23rd Floor
Suite 2360
Los Angeles, CA 90071
Tel.: (213) 489-3100
Fax: (213) 622-2514
spimila@qwest.net
Donald Brown, Manager
245 Park Avenue, Suite 3500
New York, NY 10167
Tel.: (212) 692-3000
Fax: (212) 599-5303/599-5304
newyork.us@sanpaoloimi.com
carducci@sanpaolony.com
Renato Carducci, Manager
Banca di Roma
Viale Umberto Tupini 180
00144 Roma
Tel.: +39-06-54451
www.bancaroma.it
webmaster@bacaroma.it
34 East 51st Street
New York, NY 10022
Tel.: (212) 407-1600/407-1707/407-1746/407-1780
Fax: (212) 407-1677/407-1740/407-1786
Bdrny@earthlink.net
225 West Washington Street, Suite 1200
Chicago, IL 60606
P.O. Box 7878 (or 6370) CHI.ILL. 60680
Tel.: (312) 704-5600
Fax: (312) 726-3058
Bdrchicago@aol.com
Bdrchjb@aol.com
One Market Steuart Tower, Suite 1000
San Francisco, CA 94105
Tel.: (415) 357-0800/ 977-7301
Fax: (415) 357-9869
Bdrsf@opticmail.com
Banca Intesa S.p.A.
(The integration between Cariplo and Banco Ambrosiano Veneto (1998), the aggregation of Cassa di Risparmio di Parma e Piacenza and Banca Popolare FriulAdria (1999) and the subsequent merger with Banca Commerciale Italiana (2001) were key developments that made IntesaBci the top Italian banking group.)
Via Monte di Pietá 8
20121 Milano
Tel.: +39-02-879-11
www.bancaintesa.it
info@bancaintesa.it
One William St.
New York, NY 10004
Tel.: (212) 607-3500
Fax: (212) 809-2124
Contact: Claudio Marchiori, Direttore
Banca Nazionale del Lavoro BNL S.p.A.
Via Vittorio Veneto 119
00187 Roma
Tel.: +39-06-470-21
Fax: +39-06-7402-7250
www.bnl.it
redazionebnl@bnlmail.com
25, West 51st Street
New York, NY 10019
Tel.: (212) 581-0710
Fax: (212) 489-9088
comdiv@bnlny.com
Xerox Centre
55, West Monroe Street, Suite 3490
Chicago, IL 60603
Tel.: (312) 444-9250/ 444-9251/ 444-9252/ 444-9253/ 444-9254
Fax: (312) 444-9410
bnlchicago@bnlny.com
Sanpaolo Banco di Napoli S.p.A.
Via Toledo 177/178
80132 Naples
Tel.: +39-081-791-1111
Fax: +39-081-580-1343
www.bancodinapoli.com
info.bdn@sanpaoloimi.com
Banco di Sicilia S.p.A.
Via Ruggero Settimo 1
90141 Palermo
Tel.: +39-091-608-1111
Fax: +39-091-608-3222
www.bancodisicilia.it
sicilbanco@bancodisicilia.it
UniCredito Italiano S.p.A.
Direzione Centrale
Piazza Cordusio 2
20123 Milano
Tel.: +39-02-886-211
www.unicredito.it
info@unicredit.it
375 Park Avenue
New York, NY 10152
Tel.: (212) 546-9600
Fax: (212) 546-9675
newyorkbranch@gruppocredit.it
Ufficio di Rappresentanza
Two Prudential Plaza
180 North Stetson Avenue, Suite 1310
Chicago, IL 60601-6713
Tel.: (312) 946-1111
Fax: (312) 946-1112
repoffice@ucichicago.com
Banca Monte dei Paschi di Siena S.p.A.
Piazza Salimbeni 3
53100 Siena
Tel.: +39-0577-294-111
Fax: +39-0577-294-677
www.mps.it
55, East 59th Street
New York, NY 10022-1112
Tel.: (212) 891-3600
Fax: (212) 891-3661/3
Romeo Carlo Cella, Direttore Titolare
romeocarlo.cella@banca.mps.it