San Marino: Mr. Kenji Okamura, Deputy Managing Director of the International Monetary Fund (IMF), issued the following statement today in San Marino at the end of his visit:
"I am delighted to be in San Marino. This is my first visit, and I would like to thank Captains Regent Bronzetti and Righi, Finance Minister Gatti, Minister of Foreign Affairs Beccari, Central Bank President Tomasetti, Central Bank Managing Director Vivoli, as well as other ministers and senior officials for their warm hospitality and for the productive discussions."
"In the last decade, San Marino's economy has transformed from overreliance on the financial sector serving non-residents and moved towards a diversified growth model, driven by the manufacturing and non-financial services. The economy is in a much stronger position today, thanks to the authorities' stewardship. Prudent fiscal policies, moderate wage growth, and access to international capital markets have allowed the country to weather the pandemic and the energy crises. Despite the regional slowdown and high global interest rates, San Marino's economy continues to be resilient, with employment levels at record highs."
"I commended the authorities for their ongoing efforts to reduce public debt. Pension reform and prudent wage growth policy have strengthened the fiscal position. We discussed plans to continue building fiscal buffers by containing spending, advancing income tax reforms and introducing VAT. We also discussed the challenges of fiscal policy in the current context of trade tensions and heightened uncertainty."
"In addition, we discussed the authorities' efforts to reduce financial sector vulnerabilities, including resolving banking sector legacy issues and addressing nonperforming loans, via securitization and strengthened bank regulations. While banks' liquidity, capitalization, and profitability have improved, banks will need to improve their cost efficiency to ensure long-term viability. I welcomed the progress in implementing the Anti-Money Laundering / Countering the Financing of Terrorism framework."
"The conclusion of the EU association agreement negotiations is another milestone for San Marino. The agreement will help local businesses access the EU market and will enhance the quality of San Marino's public administration as it adopts the EU regulatory framework."
"I very much appreciate the excellent, long-standing relations between San Marino and the IMF. I look forward to strengthening our continued partnership through regular policy dialogue and technical assistance."
