The information from San Marino on the assessments of the International Monetary Fund: “It sings like a rooster, but it flutters like a turkey near Christmas”
The Information of San Marino. IMF ratings: rooster crowing, but flying around like a turkey near Christmas. Well the two years just passed for the rebounding economy; strong for the winter that is expected with the rise in rates that will affect the cost of foreign debt, increase in the price of energy, securitization and slow recovery of NPLs
The post-Covid rebound with manufacturing which has been doing well in the last two years and tourism which has resumed at pre-pandemic levels with a consequent increase in deposits in the banking sector, to use a metaphor, are the indicators that make the cock crow. Titano as to the data of the last two years; but the risk is, from now on, to flutter badly like the turkey near Christmas. On closer inspection, in fact, the positive indicators all come from external agents, due precisely to the generalized rebound of the economy. While the critical points, no matter what people say, come from the circumstance that on the Titan they have not really done their homework well. On the one hand, foreign concerns thus stem from the debt incurred and the expected rise in interest rates. Then there are the reforms, which come now. Better late than never, of course, but delays always have a cost and then, perhaps the most incisive one for the public purse, that of direct taxes, is still not in sight. The other element on which they have not done their homework, is the securitization and recovery of NPLs, an operation which several directors in the last session also had the opportunity to raise harsh criticisms of the Central Bank. (…)
Article taken from The Information of San Marino