Italy's economy does not fear impact of Greece crisis: FinMin Padoan

Italy will not suffer any big impact from the Greek crisis, Italian Finance Minister Pier Carlo Padoan said on Wednesday.

"We do not fear far-reaching repercussions on our economy," Padoan said while addressing the Lower House of Italian parliament.

The exposure of Italian banks to Greece was very limited, reaching less than 1 billion euro (1.11 billion U.S. dollars), according to the minister.

"The recovery of our economy, the consolidation of our public finances, and the ongoing process of reforms, support (Italy's) ability to bear the possible shocks connected with the Greek crisis," he added.

Shortly after delivering his speech, Padoan took part in a crucial teleconference of the Eurogroup late afternoon Wednesday.

The 18 finance ministers of the eurozone countries, which meant all but Greece, joined in on the emergency conference call to examine Athens' latest request for a new package of aid worth about 29 billion euros.

Greek Prime Minister Alexis Tsipras delivered this proposal to Greece's creditors last night after the country was declared in arrears for missing a 1.6-billion-euro debt repayment to the International Monetary Fund at midnight.

Tsipras offered fresh concessions in order to obtain a new bailout, seeking in exchange a new two-year loan through the European Stability Mechanism (ESM), and a further restructuring of the debt.

The Eurogroup's ministers decided after Wednesday's meeting to wait until after the result of Greece's referendum on Sunday to resume talks.

Within this context of uncertainty, Padoan reassured the parliament that Italy was not going to follow Greece in the crisis, even in the worst-case scenario.

"Concerning the implications on our public finances of a possible Greek default, we must remember the loans Italy granted (to Athens) have already been included in our stock of debt," he said.

Italy contributed a 10.2-billion-euro bilateral loan in the first financial aid program to Greece in 2010-2011, and the government took a "prudent line by not including interest payments for this loan in its budget forecast," the minister explained.

"Principal repayments are expected to begin in June 2020 only, and therefore they do not fall within the time frame of our multi-year budget plan," said the minister.

Italy also indirectly contributed some 25.7 billion euros to the second aid package for Greece, financed via the European Financial Stability Facility (EFSF) mechanism since 2012, and those were also counted in it's public debt, Padoan added. (1 euro = 1.11 U.S. dollars) Endit