Italy's Target2 debt touches highest level since June in September

Credit: REUTERS/BENOIT TESSIER

Italy's liabilities towards other euro zone central banks jumped 41 billion euros ($47.41 billion) in September, central bank data showed on Thursday.

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MILAN, Oct 7 (Reuters) - Italy's liabilities towards other euro zone central banks jumped 41 billion euros ($47.41 billion) in September, central bank data showed on Thursday.

Data published by the Bank of Italy showed Italy's Target 2 debt stood at 513.52 billion euros at the end of September, the highest level since June, compared with 472.47 billion euros in August.

The European Central Bank's funding to Italian banks fell to 448.71 billion euros last month from 462.9 billion euros in August, the data also showed.

A country's Target 2 position is monitored as a sign of financial stress and imbalances within the euro zone.

Target2 debt could rise, for example, due to capital outflows. It also reflects increased reliance of domestic banks on ECB's funding.

Italy started publishing its Target2 debt position in September 1997.

($1 = 0.8648 euros)

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(Reporting by Sara Rossi, editing by Maria Pia Quaglia)

((sara.rossi@thomsonreuters.com; +39 06 8030 7736;))

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