Search
00
GBAF Logo
trophy
Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

Subscribe to our newsletter

Get the latest news and updates from our team.

Global Banking & Finance Review®

Global Banking & Finance Review® - Subscribe to our newsletter

Company

    GBAF Logo
    • About Us
    • Profile
    • Privacy & Cookie Policy
    • Terms of Use
    • Contact Us
    • Advertising
    • Submit Post
    • Latest News
    • Research Reports
    • Press Release
    • Awards▾
      • About the Awards
      • Awards TimeTable
      • Submit Nominations
      • Testimonials
      • Media Room
      • Award Winners
      • FAQ
    • Magazines▾
      • Global Banking & Finance Review Magazine Issue 79
      • Global Banking & Finance Review Magazine Issue 78
      • Global Banking & Finance Review Magazine Issue 77
      • Global Banking & Finance Review Magazine Issue 76
      • Global Banking & Finance Review Magazine Issue 75
      • Global Banking & Finance Review Magazine Issue 73
      • Global Banking & Finance Review Magazine Issue 71
      • Global Banking & Finance Review Magazine Issue 70
      • Global Banking & Finance Review Magazine Issue 69
      • Global Banking & Finance Review Magazine Issue 66
    Top StoriesInterviewsBusinessFinanceBankingTechnologyInvestingTradingVideosAwardsMagazinesHeadlinesTrends

    Global Banking & Finance Review® is a leading financial portal and online magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management.
    Copyright © 2010-2026 GBAF Publications Ltd - All Rights Reserved. | Sitemap | Tags | Developed By eCorpIT

    Editorial & Advertiser disclosure

    Global Banking & Finance Review® is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

    Home > Finance > Italian court could rule this week on $1 billion state payment to TIM, sources say
    Finance

    Italian court could rule this week on $1 billion state payment to TIM, sources say

    Published by Global Banking & Finance Review®

    Posted on January 20, 2025

    3 min read

    Last updated: January 27, 2026

    The image illustrates the Italian appeals court, which is set to rule on the government's request to suspend a $1 billion payment to Telecom Italia (TIM) amid ongoing financial disputes.
    Image depicting the Italian court's decision on a $1 billion TIM payment - Global Banking & Finance Review
    Why waste money on news and opinion when you can access them for free?

    Take advantage of our newsletter subscription and stay informed on the go!

    Subscribe

    Tags:telecommunicationsGovernment fundingfinancial managementinvestmentcorporate strategy

    Quick Summary

    An Italian court will soon decide if Telecom Italia receives a $1 billion payment from the government, amid ongoing legal disputes and shareholder reward plans.

    Italian Court to Decide on $1 Billion Payment to Telecom Italia This Week

    By Elvira Pollina and Paolo Chiriatti

    ROME (Reuters) -Telecom Italia (TIM) could learn as early as this week whether it will receive 1 billion euros ($1 billion) it is owed by Italy's government, three legal sources said after the parties failed to agree an out-of-court settlement by Monday's deadline.

    The government has requested the payment, which stems from a dispute dating back to 1998 relating to the liberalisation of the country's telecoms sector, be suspended until the case goes to Italy's supreme court later this year.

    TIM and the government were given until Jan. 20 to reach a possible out-of-court settlement. They informed the court at a closed-door hearing on Monday that they had failed to do so, the sources said.

    The court is now expected to decide as soon as this week on the payment suspension request, the sources added.

    TIM CEO Pietro Labriola said in November that any cash from the case could be used to support shareholder reward plans.

    With its finances under strain until last year's multi-billion euro sale of its core fixed-line network to KKR, TIM has suspended any payments to shareholders in recent years.

    Due to present a strategy update next month, Labriola is under pressure to resume dividend payments.

    The 1 billion euro payment obligation follows a decision by a lower court in April which ruled in favour of TIM and ordered the government to pay the sum, which includes around 500 million euros in interest that has piled up over the years.

    The government appealed against the April ruling, and sought a suspension of its effects until its appeal is heard in front of Italy's top court.

    The supreme court's decision is expected between the end of this year and early 2026. In a similar case, the top court ruled in favour of Vodafone.

    In terms of remunerating investors, TIM is also counting on the planned 700 million euro sale of its submarine cable unit Sparkle to the state and Spanish fund Asterion.

    Contrary to expectations, TIM's board will be unable to approve the sale this week, three sources with knowledge of the matter said separately, because banks still have to finalise a 600 million financing package supporting the binding offer.

    ($1 = 0.9696 euros)

    (Reporting by Paolo Chiriatti in Rome and Elvira Pollina in Milan; Editing by Valentina Za and Susan Fenton)

    Key Takeaways

    • •Italian court to decide on $1 billion payment to Telecom Italia.
    • •The payment dispute dates back to 1998 telecom sector liberalisation.
    • •TIM plans to use funds for shareholder rewards.
    • •Government appealed April's ruling favoring TIM.
    • •Supreme court decision expected by early 2026.

    Frequently Asked Questions about Italian court could rule this week on $1 billion state payment to TIM, sources say

    1What is the amount Telecom Italia is seeking from the government?

    Telecom Italia is seeking 1 billion euros ($1 billion) from Italy's government.

    2What is the basis for the payment dispute?

    The payment dispute dates back to 1998 and relates to the liberalisation of Italy's telecoms sector.

    3What did the lower court decide regarding the payment?

    A lower court ruled in favor of TIM in April, ordering the government to pay the 1 billion euros.

    4What is the timeline for the supreme court's decision?

    The supreme court's decision on the government's appeal is expected between the end of this year and early 2026.

    5How might the payment affect TIM's shareholder plans?

    TIM's CEO indicated that any cash received could support shareholder reward plans, which have been suspended in recent years.

    More from Finance

    Explore more articles in the Finance category

    Image for Greenland foreign minister says US talks are positive but the outcome remains uncertain
    Greenland foreign minister says US talks are positive but the outcome remains uncertain
    Image for Hungary's opposition Tisza promises wealth tax, euro adoption in election programme
    Hungary's opposition Tisza promises wealth tax, euro adoption in election programme
    Image for Farmers report 'catastrophic' damage to crops as Storm Marta hits Spain and Portugal
    Farmers report 'catastrophic' damage to crops as Storm Marta hits Spain and Portugal
    Image for If US attacks, Iran says it will strike US bases in the region
    If US attacks, Iran says it will strike US bases in the region
    Image for Olympics-Biathlon-Winter Games bring tourism boost to biathlon hotbed of northern Italy
    Olympics-Biathlon-Winter Games bring tourism boost to biathlon hotbed of northern Italy
    Image for Analysis-Bitcoin loses Trump-era gains as crypto market volatility signals uncertainty
    Analysis-Bitcoin loses Trump-era gains as crypto market volatility signals uncertainty
    Image for NatWest closes in on $3.4 billion takeover of wealth manager Evelyn, Sky News reports
    NatWest closes in on $3.4 billion takeover of wealth manager Evelyn, Sky News reports
    Image for Stellantis-backed ACC drops plans for Italian, German gigafactories, union says
    Stellantis-backed ACC drops plans for Italian, German gigafactories, union says
    Image for US pushes Russia and Ukraine to end war by summer, Zelenskiy says
    US pushes Russia and Ukraine to end war by summer, Zelenskiy says
    Image for Russia launches massive attack on Ukraine's energy system, Zelenskiy says
    Russia launches massive attack on Ukraine's energy system, Zelenskiy says
    Image for Russia launched 400 drones, 40 missiles to hit Ukraine's energy sector, Zelenskiy says
    Russia launched 400 drones, 40 missiles to hit Ukraine's energy sector, Zelenskiy says
    Image for The Kyiv family, with its pets and pigs, defying Russia and the cold
    The Kyiv family, with its pets and pigs, defying Russia and the cold
    View All Finance Posts
    Previous Finance PostUK's Reeves to meet key financial services sectors
    Next Finance PostLondon rejects N.Irish unionist request to use emergency brake on EU label law