By Laura Contemori – ROME (Econostream) – Italy's general government debt rose by €26.2 billion in June from the previous month to €3.207 trillion, reflecting the general government borrowing requirement, higher Treasury cash holdings and valuation effects, the Bank of Italy said on Friday.

The general government borrowing requirement amounted to €13.3 billion and Treasury cash holdings rose by €9.8 billion to €61.7 billion during the month.

The effects of discounts and premiums on issuance and redemption, the revaluation of inflation-indexed securities and changes in exchange rates together increased debt by €3.1 billion.

By subsector, the increase was attributable to central government debt, which rose by €26.9 billion, partly offset by a €0.7 billion decline in local government debt.

The average residual maturity of government debt remained stable at 7.9 years.

The share held by the Bank of Italy fell to 16.7% in June from 17.2% in May.  For May, the latest available data showed foreign investors increased their holdings to 35.9% of outstanding debt from 35.7% a month earlier, while the share held by other domestic residents, mainly households and non-financial corporations, fell to 14.5% from 14.7% previously.

Tax revenues recorded in the state budget fell 1.3% year-on-year in June to €43.2 billion, a drop of €0.6 billion compared with the same month of 2025.  In the first six months of 2026, tax revenues totaled €261 billion, up €3.6 billion, or 1.4%, from the same period of 2025.