Abstract
Over the last half decade, San Marino’s economy has managed to weather the implosion of its offshore banking model, the global crisis, and Italy’s decision to put San Marino on a tax blacklist. Together, these shocks resulted in a loss of a third of output since 2008, caused banking system NPLs to rise to over 40 percent—with the largest bank requiring 13 percent of GDP in public support—and pushed up net public debt by some 20 percent of GDP (from virtually nil five years ago). Looking forward, the economy is stabilizing, reflecting the inclusion of San Marino in Italy’s tax whitelist, but downside risks persist.
Fund Relations
(As of January 31, 2015)
Membership Status
Joined: September 23, 1992; Article VIII
| General Resources Account | SDR Million | Percent of Quota |
|---|---|---|
| Quota | 22.40 | 100.00 |
| Fund holdings of currency | 16.95 | 75.67 |
| Reserves tranche position | 5.45 | 24.34 |
| General Resources Account | SDR Million | Percent of Quota |
|---|---|---|
| Quota | 22.40 | 100.00 |
| Fund holdings of currency | 16.95 | 75.67 |
| Reserves tranche position | 5.45 | 24.34 |
| SDR Department | SDR Million | Percent of Allocation |
|---|---|---|
| Net cumulative allocation | 15.53 | 100.00 |
| Holdings | 15.46 | 99.55 |
| SDR Department | SDR Million | Percent of Allocation |
|---|---|---|
| Net cumulative allocation | 15.53 | 100.00 |
| Holdings | 15.46 | 99.55 |
Outstanding Purchases and Loans: None
Latest Financial Arrangements: None
Projected Payments to the Fund: None
Implementation of HIPC Initiative: Not applicable
Implementation of Multilateral Debt Relief Initiative: Not applicable
Implementation of Post-Catastrophe Debt Relief: Not applicable
Exchange Arrangements
Prior to 1999 the currency of San Marino was the Italian lira. Since January 1, 1999, San Marino uses the euro as its official currency. The central monetary institution is the Central Bank of San Marino (CBSM). Foreign exchange transactions are conducted through commercial banks without restriction at rates quoted in Italian markets. There are no taxes or subsidies on purchases or sales of foreign exchange. San Marino’s exchange system is free of restrictions on the making of payments and transfers for current international transactions, except for those maintained solely for the preservation of national or international security and which have been notified to the Fund pursuant to Executive Board Decision No. 144-(52/51).1
Article IV Consultation
San Marino is on a 12-month cycle. The previous Article IV consultation discussions took place during January 29–February 7, 2014, and the consultation was concluded on April 23, 2014 (IMF Country Report No. 14/104).
FSAP Participation
A review under the Financial Sector Assessment Program (FSAP) was completed in 2010.
Technical Assistance
| Year | Department/Purpose |
|---|---|
| 1997 | STA Multi-sector assistance |
| 2004 | STA Monetary and financial statistics |
| 2005 | MFD Deposit insurance |
| 2008 | STA GDDS metadata development |
| 2009 | LEG AML/CFT |
| 2011 | STA National accounts statistics |
| 2012 | STA Government finance statistics |
| 2012 | STA Monetary and Financial Statistics |
| 2013 | STA Balance of Payments Statistics |
| 2014 | FAD Expenditure Policy |
| Year | Department/Purpose |
|---|---|
| 1997 | STA Multi-sector assistance |
| 2004 | STA Monetary and financial statistics |
| 2005 | MFD Deposit insurance |
| 2008 | STA GDDS metadata development |
| 2009 | LEG AML/CFT |
| 2011 | STA National accounts statistics |
| 2012 | STA Government finance statistics |
| 2012 | STA Monetary and Financial Statistics |
| 2013 | STA Balance of Payments Statistics |
| 2014 | FAD Expenditure Policy |
Resident Representative: None
Statistical Issues
(As of February 26, 2015)
Data Provision
Data provision is broadly adequate for surveillance, but some data gaps exist. Progress has been made since San Marino’s participation in the IMF’s General Data Dissemination System (GDDS) on May 16, 2008, but important weaknesses in the statistical database remain, mainly due to resource constraints. In January 2007, in view of their intention to participate in the GDDS, the authorities named two national GDDS coordinators and announced their objective to increase the frequency of website updates in order to improve data dissemination. As of March 2012, national and fiscal accounts, as well as monetary and financial sector data are compiled according to international standards, but some key statistics (such as real and fiscal data) are available only with delay and, in many cases, are at a lower-than-standard frequency and level of detail.
Real Sector Statistics
National accounts data for 1995 onward have been calculated in accordance with ESA95, and data are compiled annually based on the income approach with about 10 months delay. The authorities have also calculated sectoral contributions. As part of ongoing STA technical assistance on national accounts statistics, production and expenditure approaches are being adopted. Consumer prices and employment data are available monthly with short delays. An industrial production index based on electricity consumption, launched in 2000, became available monthly in 2009. Consumption and business sentiment indices have been compiled starting in 2007 based on annual household and business surveys.
Government Finance Statistics
The authorities have provided data for the central government, state-owned enterprises, and social security fund for 2004–14, as well as the budget for 2015. However, some of the data have not been compiled in accordance with IMF standards. Financing items, such as amortization, are included as expenditures while “borrowing requirement” is included among the revenues.
Monetary and Financial Statistics
Since 1997, the authorities have provided balance sheet data on the commercial banks and the monetary authorities to STA databases. These data are provided on a quarterly basis, with approximately a six-week reporting lag. The authorities have introduced laws and took some measures to improve coverage and timeliness of banks’ reporting. The CBSM has improved sectorization and expanded data collection to cover the offshore asset management activities of banks. The breakdown of deposits (and other assets and liabilities) between residents and nonresidents and the breakdown of short-term credit by public and private sector components are also available. However, there is no broad money survey. Data on nonbank financial intermediaries are also lacking.
External Sector Statistics
Starting in 2008, trade statistics have been released quarterly with a lag of about six months.
San Marino does not publish balance of payments accounts, but the authorities have received Fund technical assistance on BOP statistics and are in the process of compiling them.
San Marino: Table of Common Indicators Required for Surveillance
(As of February 26, 2015)
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Lack of capacity precludes the compilation of balance of payments data at present. Fund technical assistance in this area is ongoing.
San Marino: Table of Common Indicators Required for Surveillance
(As of February 26, 2015)
| Date of latest observation | Date received | Frequency of Data5 | Frequency of Reporting5 | Frequency of Publication5 | |
|---|---|---|---|---|---|
| Exchange Rates | 2/26/14 | 2/26/14 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | Q2 2014 | Jun 2014 | Q | Q | Q |
| Reserve/Base Money | Q2 2014 | Dec 2014 | Q | Q | Q |
| Broad Money | Q2 2014 | Dec 2014 | Q | Q | Q |
| Central Bank Balance Sheet | Q2 2014 | Dec 2014 | Q | Q | Q |
| Consolidated Balance Sheet of the Banking System | Q2 2014 | Dec 2014 | Q | Q | Q |
| Interest Rates2 | Q2 2014 | Dec 2014 | Q | Q | Q |
| Consumer Price Index | Dec 2014 | Feb 2015 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | Q4 2014 | Jan 2015 | A | A | A |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | Q4 2014 | Jan 2015 | A | A | A |
| Stocks of Central Government and Central Government-Guaranteed Debt | Q4 2014 | Jan 2015 | A | A | A |
| External Current Account Balance | NA 6 | ||||
| Exports and Imports of Goods and Services | 2013 | Nov 2014 | A | A | A |
| GDP/GNP | 2013 | Nov 2014 | A | A | A |
| Gross External Debt | NA 6 | ||||
| International Investment Position | NA 6 |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Lack of capacity precludes the compilation of balance of payments data at present. Fund technical assistance in this area is ongoing.
San Marino: Table of Common Indicators Required for Surveillance
(As of February 26, 2015)
| Date of latest observation | Date received | Frequency of Data5 | Frequency of Reporting5 | Frequency of Publication5 | |
|---|---|---|---|---|---|
| Exchange Rates | 2/26/14 | 2/26/14 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | Q2 2014 | Jun 2014 | Q | Q | Q |
| Reserve/Base Money | Q2 2014 | Dec 2014 | Q | Q | Q |
| Broad Money | Q2 2014 | Dec 2014 | Q | Q | Q |
| Central Bank Balance Sheet | Q2 2014 | Dec 2014 | Q | Q | Q |
| Consolidated Balance Sheet of the Banking System | Q2 2014 | Dec 2014 | Q | Q | Q |
| Interest Rates2 | Q2 2014 | Dec 2014 | Q | Q | Q |
| Consumer Price Index | Dec 2014 | Feb 2015 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | Q4 2014 | Jan 2015 | A | A | A |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | Q4 2014 | Jan 2015 | A | A | A |
| Stocks of Central Government and Central Government-Guaranteed Debt | Q4 2014 | Jan 2015 | A | A | A |
| External Current Account Balance | NA 6 | ||||
| Exports and Imports of Goods and Services | 2013 | Nov 2014 | A | A | A |
| GDP/GNP | 2013 | Nov 2014 | A | A | A |
| Gross External Debt | NA 6 | ||||
| International Investment Position | NA 6 |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Lack of capacity precludes the compilation of balance of payments data at present. Fund technical assistance in this area is ongoing.
EU Regulations are not directly applicable to San Marino as a result of Article 249 of the Treaty Establishing the European Community, but they may well be applied as a result of the legal relationship between San Marino and Italy, acting on behalf of the European Union, or as a result of the monetary agreement signed between San Marino and the European Union.