Clifford Chance

Italy introduces non-preferred senior debt

27 December 2017

Italy has introduced a new category of non-preferred senior debt (strumenti di debito chirografario di secondo livello) by means of the Law on the budget of the Italian government for 2018 (the "2018 Budget Law") approved on 23 December 2017.  As from 1 January 2018, the date on which the 2018 Budget Law will enter into force, and in the event of the insolvency of credit entities, non-preferred ordinary claims will rank behind ordinary claims (crediti chirografari) and ahead of subordinated claims.  An ordinary claim will only be considered 'non-preferred' if it meets all of the conditions established for such purposes under the 2018 Budget Law.

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