Mr. Kenji Okamura, Deputy Managing Director of the International Monetary Fund (IMF), concluded his visit to San Marino with a statement reflecting on the country's economic progress and future challenges. During his visit, he met with various officials including Captains Regent Bronzetti and Righi, Finance Minister Gatti, Minister of Foreign Affairs Beccari, Central Bank President Tomasetti, and Central Bank Managing Director Vivoli.
Okamura noted that San Marino's economy has shifted from relying heavily on the financial sector serving non-residents to a more diversified growth model driven by manufacturing and non-financial services. He attributed this transformation to prudent fiscal policies, moderate wage growth, and access to international capital markets which helped the country withstand recent global crises.
He praised the authorities for their efforts in reducing public debt through pension reform and wage growth policies. Discussions also covered plans for building fiscal buffers by controlling spending, advancing income tax reforms, and introducing VAT amidst current trade tensions and uncertainties.
Addressing financial sector vulnerabilities was another key topic. Efforts are being made to resolve banking sector legacy issues and address nonperforming loans through securitization and strengthened regulations. Okamura acknowledged improvements in banks' liquidity, capitalization, and profitability but stressed the need for enhanced cost efficiency for long-term viability. Progress in implementing the Anti-Money Laundering / Countering the Financing of Terrorism framework was also recognized.
The conclusion of EU association agreement negotiations marks a significant step for San Marino. This agreement is expected to facilitate local businesses' access to the EU market while improving public administration quality through adherence to EU regulatory standards.
Expressing appreciation for the strong relations between San Marino and the IMF, Okamura looks forward to ongoing collaboration through regular policy dialogue and technical assistance.