After the positive opinion expressed only a few days ago by the IMF, the evaluation of the rating agency Fitch, an authoritative assessment of the health of the San Marino economy, was particularly awaited by the Secretariat of State for Finance and Budget. Well Fitch p confirms the rating at “BB +” and positively revises the outlook bringing it to “stable” from the previous “negative”
In the opinion expressed, Fitch acknowledges that the economy of San Marino has shown resilience to the shock of the Covid-19 pandemic, thanks also to the success of the vaccination campaign that has accelerated the recovery and reopening of important sectors.
The recovery was driven by a significant improvement in the tourism and manufacturing sector data, which showed faster growth than even the main commercial partner of reference, reaching pre-pandemic levels in the summer months.
But it is on the San Marino financial sector that Fitch’s positive judgments are expressed where it is expressly reported that “the authorities recently enacted a new law to facilitate the reduction of NPLs through securitization”, Noting that these measures have also been successful in other important European countries.
The invitation to continue on the path of challenges for the financial sector, the choices of the Government and a stable political framework favored the recovery of confidence in the San Marino banking system.
The direct consequence was in the short term an improvement in liquidity positions thanks to the increase in customer deposits and the repayment by the government of the “zero coupon” obligation with CARISP, as well as the improvement of the capital ratios of the individual institutions, although however, underlining the need for major restructuring and internal plans specific to the
Positive opinion also on the fiscal management defined as prudent in recent months which has produced an improvement in the deficit and in the trajectory of public debt in the coming years.
The rating agency Fitch also reconfirms what the IMF expressed on the right choice made by the government on access for the first time to international capital markets by issuing a 340 million three-year bond that guaranteed a safety threshold in the balance sheet liquidity.
Satisfaction by the Secretary of State for Finance, Marco Gatti: “The positive opinion of this year comes with a few months delay as already in April of having emphasized the good state of our economy. Now we must do more to continue this virtuous path we have undertaken, addressing the structural reform plan outlined and regaining the investment grade country rating.“.