Republic of San Marino: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of San Marino

IMF Staff Country Reports, May 10, 2016

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Canonical URL: Republic of San Marino: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of San Marino

The paper assesses key issues related to the economy of the Republic of San Marino.
San Marino "remains in transition following the implosion of its offshore banking model in the aftermath of the global crisis, resulting in the loss of a third of output."
The impact of the global financial crisis "led to a massive outflow of nonresident deposits and a sharp downsizing of its large financial sector," causing "an extraordinary loss of a third of San Marino’s output—the largest in Europe."

Banking sector: Large downsizing of the financial sector following massive outflows of nonresident deposits.
Output: Loss of a third of output as a consequence of the crisis and banking-model implosion.
Regional context: Decline described as "the largest in Europe."

Strengthen the banking system.
Realign fiscal policy.
Improve flexibility to enable diversification.
A number of important steps need to be taken for sustainable growth focusing on the above areas.

Subject: Banking, Commercial banks, Expenditure, Financial institutions, Financial statistics, Loans, Nonperforming loans, Public debt
Keywords: banking system liquidity situation, Commercial banks, CR, economy, Europe, Global, IMF staff calculation, ISCR, Loans, Nonperforming loans, performing loan, Sammarinese authorities, Sta balance of payments statistics, Sta government finance statistics