San Marino risks default due to debts between falling GDP, Covid and collapsing banks. To save himself, he knocks on the Italian government and Bankitalia


More than the Titan is a Titanic drifting, which launches sos into the air and telegraphs to Rome invoking rescue. There Republic of San Marino, which has always been a crossroads of millionaire accounts and affairs, is literally penniless, burdened by 360 million in debt, from the banking system to collapse e titles reduced to “garbage”. To avoid default, without renouncing its “sovereignty”, the little stately tries them all: the debut on the international capital market with a “Titan bond” from 500 million launched in recent days under the aegis of JPMorgan, the electronic money (“The titan”, value one euro) to give liquidity to families and pay pensions, without disturbing the ECB. At stake – but the people of San Marino say it through clenched teeth – there is even the hypothesis of introduce VAT that is not never seen over there.

Down below though, the oldest constitutional republic in the world – copyright of Abraham Lincoln – seeks its first and natural shore in Italy in, the country that most of all endured the autonomous enclave on the slopes of Monte Titano, between Romagna is Marche, which became mythological in the maps of the dirty finance and of triangulations company.

From his, he claims to present himself to the international bailout court with the papers in order. San Marino is no longer theEl Dorado of the Dodgers and gods recycling prophets, repeats the Secretary of State for Finance Marco Gatti, nephew of that Gabriele Gatti who for 30 years was the strongman of the San Marino DC (now returned to government), a former head of state and foreign minister who was arrested in the Tangentopoli del Titano on charges of corruption, money laundering and exchange vote. “We feel but do not talk about politics” assures the nephew who insists on the “real country” made of 6 thousand Italian cross-border commuters and of “industrial and chemical-pharmaceutical manufacturing industries competing internationally and they don’t deserve to sink“.

For these reasons, the crisis of the mini-state from 10 thousand double residences he hears in the conversations sought with the government (through foreign representation) and also the attention of the parties, as evidenced by the questioning of the Romagna deputies of Italia Viva asking the government what intentions it has without however speaking openly of interventions by national economic recovery. “If you miss the San Marino bank, it’s a drama for 10,000 Italians”, Spurs Marco Di Maio MP elected in the Forlì-Faenza uninominal college with the Democratic Party and now passed with Renzi.

There Republic of San Marinoafter all, he paid his price. Close to coasts of Rimini, suffered theimpact of the infections and paid dearly for the uncertainty of the first months, with 1200 residents quarantined up 33 thousand, one of the hardest hit states in the world. “The government initially feared the economic effects of the lockdown because we were already in black crisis“He explains Giuseppe Maria Morganti, councilor of the opposition of PSD, the Titan’s Democratic Party. “Then we reacted well thanks to one health which is strictly public and capable of reorganizing: our hospital had 4 intensive care units and in 15 days they became 20, the isolation was zero gave 70 people places. Now we are officially with zero contagions“.

Stay therehorror vacui of those who, after the health crisis and the lockdown, face the economic one without outlets e indebted to the neck. The closures have ate 12 percent of GDP which adds to the 28 percent drop in the past five years. “The wealth of San Marino has more than halved,” summarizes Morganti. They ate it the banks: of the 11 existing ones, six have closed, one has become state-owned. The latest settlement declared impaired debts of 100 million and more than double it. The state had to take on those debts, which now must place them in some way.

In addition to the bond, to respond to the liquidity crisis we think of aintervention by 200 million IMF for which the placet of the Bank of Italy. A promotion on the supervisory front would help open up to money market. And here also geopolitics comes into play. The risk around the corner is that San Marino debt sooner or later if they buy it Russians is Chinese, maybe in exchange for votes in favor of the UN and the OECD. And nobody in the Titano-Titanic, which has been floating along the neutrality line since 1300, is willing to wake up having sold it off with its sovereignty.

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