Abstract
A moderate recovery has set in, supported by an increasing number of new firms and rising employment. Fiscal deficits are contained and some efforts are underway to assess and better address test banking sector weaknesses. However, the challenges of restoring financial stability, creating fiscal space, and achieving sustainable growth remain considerable.
Fund Relations
(As of February 10, 2017)
Membership Status: Joined September 23, 1992; Article VIII
| General Resources Account | SDR Million | Percent of Quota |
| Quota | 49.20 | 100.00 |
| Fund holdings of currency | 37.05 | 75.30 |
| Reserves tranche position | 12.15 | 24.70 |
| General Resources Account | SDR Million | Percent of Quota |
| Quota | 49.20 | 100.00 |
| Fund holdings of currency | 37.05 | 75.30 |
| Reserves tranche position | 12.15 | 24.70 |
| SDR Department | SDR Million | Percent of Allocation |
| Net cumulative allocation | 15.53 | 100.00 |
| Holdings | 8.77 | 56.47 |
| SDR Department | SDR Million | Percent of Allocation |
| Net cumulative allocation | 15.53 | 100.00 |
| Holdings | 8.77 | 56.47 |
Outstanding Purchases and Loans: None
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
Latest Article IV Consultation:
San Marino is on a 12-month cycle. The previous Article IV consultation discussions took place during March 8–16, 2016, and the consultation was concluded on May 6, 2016 (IMF Country Report No. 16/111).
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 |
| 2016 | MCM Cassa di Risparmio Bank Restructuring |
| 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 |
| 2016 | MCM Cassa di Risparmio Bank Restructuring |
Resident Representative: None
Statistical Issues
(As of February 10, 2017)
| I. Assessment of Data Adequacy for Surveillance |
|---|
| General: 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. |
| National Accounts: National accounts data for 1995 onward have been calculated in accordance with ESA95, and data are compiled annually based on all three approaches—income, production, and expenditure, albeit with about 10-months delay. 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. |
| Price Statistics: Consumer prices data are available monthly with short delays. |
| Government Finance Statistics: The authorities have provided data for the central government, state-owned enterprises, and social security fund for 2004–16, as well as the budget for 2017. 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 authority to STA databases, although due to data consistency issues since 2015Q2, their publication has been postponed. 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. |
| Financial Sector Surveillance: The authorities report financial soundness indicators (FSIs), 11 out of 12 core and 5 out of 13 encouraged FSIs for deposit takers, on a quarterly basis. FSIs for other financial corporations, nonfinancial corporations, and households are not reported. |
| 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. |
| I. Assessment of Data Adequacy for Surveillance |
|---|
| General: 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. |
| National Accounts: National accounts data for 1995 onward have been calculated in accordance with ESA95, and data are compiled annually based on all three approaches—income, production, and expenditure, albeit with about 10-months delay. 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. |
| Price Statistics: Consumer prices data are available monthly with short delays. |
| Government Finance Statistics: The authorities have provided data for the central government, state-owned enterprises, and social security fund for 2004–16, as well as the budget for 2017. 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 authority to STA databases, although due to data consistency issues since 2015Q2, their publication has been postponed. 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. |
| Financial Sector Surveillance: The authorities report financial soundness indicators (FSIs), 11 out of 12 core and 5 out of 13 encouraged FSIs for deposit takers, on a quarterly basis. FSIs for other financial corporations, nonfinancial corporations, and households are not reported. |
| 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 10, 2017)
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
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.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
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 10, 2017)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | Feb 2017 | Feb 2017 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | Q1 2015 | Dec 2015 | Q | Q | Q |
| Reserve/Base Money | Q1 2015 | Dec 2015 | Q | Q | Q |
| Broad Money | Q1 2015 | Dec 2015 | Q | Q | Q |
| Central Bank Balance Sheet | Q1 2015 | Dec 2015 | Q | Q | Q |
| Consolidated Balance Sheet of the Banking System | Q4 2016 | Feb 2017 | Q | Q | Q |
| Interest Rates2 | Q2 2015 | Dec 2016 | Q | Q | Q |
| Consumer Price Index | Nov 2016 | Jan 2017 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | Q4 2015 | Dec 2016 | A | A | A |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | Q4 2015 | Dec 2016 | A | A | A |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | Q4 2015 | Dec 2016 | A | A | A |
| External Current Account Balance | NA 6 | ||||
| Exports and Imports of Goods and Services | 2015 | Nov 2016 | A | A | A |
| GDP/GNP | 2015 | Nov 2016 | A | A | A |
| Gross External Debt | NA 8 | ||||
| International Investment Position 6 | NA 8 |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
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.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
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 10, 2017)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | Feb 2017 | Feb 2017 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | Q1 2015 | Dec 2015 | Q | Q | Q |
| Reserve/Base Money | Q1 2015 | Dec 2015 | Q | Q | Q |
| Broad Money | Q1 2015 | Dec 2015 | Q | Q | Q |
| Central Bank Balance Sheet | Q1 2015 | Dec 2015 | Q | Q | Q |
| Consolidated Balance Sheet of the Banking System | Q4 2016 | Feb 2017 | Q | Q | Q |
| Interest Rates2 | Q2 2015 | Dec 2016 | Q | Q | Q |
| Consumer Price Index | Nov 2016 | Jan 2017 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | Q4 2015 | Dec 2016 | A | A | A |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | Q4 2015 | Dec 2016 | A | A | A |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | Q4 2015 | Dec 2016 | A | A | A |
| External Current Account Balance | NA 6 | ||||
| Exports and Imports of Goods and Services | 2015 | Nov 2016 | A | A | A |
| GDP/GNP | 2015 | Nov 2016 | A | A | A |
| Gross External Debt | NA 8 | ||||
| International Investment Position 6 | NA 8 |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
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.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
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 the EU, including the Monetary Agreement.