The annual mission of the International Monetary Fund (IMF) under Article IV of its Articles of Agreement, which involves a periodic assessment of the economic performance of member countries, has concluded today. The IMF delegation, led by the new Mission Chief Anna Shabunina, held technical meetings with the Government, the Central Bank of San Marino (CBSM), social partners, and representatives from key sectors of the country's economy.
The CBSM participated in several meetings with the IMF delegation, during which key dynamics of the financial sector were discussed. In this context, the IMF highlighted the improvement in liquidity and profitability in the Sammarinese banking system, while also pointing out the challenges that operators will face in the near future. Among these challenges is the need to contain costs in light of the potential opening of the market tied to the upcoming Association Agreement, which will inevitably lead to increased competition. The IMF also praised the "important" progress made in reducing non-performing loans, stemming from the securitization operation and the calendar provisioning measures. However, it stressed the importance of continuing to strengthen the capital base of the banks while eliminating regulatory constraints that limit full control over some institutions.
Regarding the forthcoming signing of the Association Agreement with the European Union, the IMF emphasized the need to accelerate the reform process, particularly in the financial sector, to ensure that all stakeholders are adequately prepared. This requires strategic investments in human and technical resources to tackle the challenges posed by European integration and fully seize the development opportunities that will arise from it.
Lastly, the IMF delegation announced that San Marino would adopt a new simplified procedure for approving the staff report. This procedure, which does not require discussion of the report by the IMF Board unless specifically requested by the Executive Directors, reflects a tangible recognition of the positive progress made by the Republic of San Marino in recent years.
The concluding statement of the IMF mission is available at the following link:
IMF Concluding Statement for San Marino 2024