The Bank of Italy has relaxed approval rules for bond issues for the first time since the collapse of food and dairy group Parmalat in 2003. Official approval will no longer be necessary for bonds raising up to €2bn ($2.4bn) and in some cases up to €4bn. The post-Parmalat threshold was €50m.

The reforms, to be introduced immediately, are contained in a letter released yesterday from the Bank of Italy and signed by governor Antonio Fazio.