MILAN, July 7 (Reuters) - Italy’s debt with the European Central Bank edged down in June after hitting a record high the previous month when capital flew out of the euro zone’s third-largest economy.
Italy’s net debt to the ECB’s Target 2 payment system, which settles cross-border payments in the euro zone, fell to 413.9 billion euros in June from 421.6 billion euros in May, the Bank of Italy said on Friday.
The country’s position is monitored monthly and an increase in liabilities can indicate financial stress.
Italy’s position worsened during the euro zone’s sovereign crisis as foreign investors cut their holdings of the country’s debt. As the European Central Bank has pressed ahead with its bond buying programme Italians have preferred foreign assets, diversifying away from negative-yielding government bonds. (Reporting by Giulio Piovaccari, writing by Giulia Segreti)