IMF Staff Country Reports

Republic of San Marino: Selected Issues

April 11, 2018

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Republic of San Marino: Selected Issues, (USA: International Monetary Fund, 2018) accessed November 8, 2024

Summary

This Selected Issues paper presents scenarios to assess debt dynamics and discusses key considerations in developing a medium-term fiscal strategy and adjustments.in San Marino. San Marino faces new fiscal challenges. Recent interventions in the financial sector are set to increase the debt to gross domestic product (GDP) level, although the eventual level of public debt remains highly uncertain. The government has granted banks the right to convert tax credits to government bonds, thus creating contingent liabilities. Going forward a fiscal strategy is needed. The scenario analysis in this paper suggests that the debt-to-GDP ratio could rise to 55–90 percent of GDP. Such levels would be high for San Marino and well above the level observed in other European microstates. At the same time, government deposits have been decreasing to a low level. A medium-term fiscal strategy could thus aim at containing the debt-to-GDP ratio and rebuilding deposits. The analysis in this paper offered considerations that could be helpful in determining fiscal adjustments needed to reach such targets.

Subject: Contingent liabilities, External debt, Fiscal consolidation, Fiscal policy, Interest payments, Public debt, Public financial management (PFM), Tax allowances, Taxes

Keywords: Contingent liabilities, CR, Debt, Debt path, Debt ratio, Debt ratio reach, Debt stock, Debt target, Fiscal consolidation, Global, IMF staff calculation, Interest payments, ISCR, Path Under Various Shocks, San Marino authorities, Tax allowances

Publication Details

  • Pages:

    11

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2018/102

  • Stock No:

    1SMREA2018002

  • ISBN:

    9781484350799

  • ISSN:

    1934-7685

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