We celebrate Andorra’s IMF Membership

In spite of the unusual situation we are living in due to the Covid-19 pandemic, this last quarter of 2020 starts with some good news as we welcome Andorra’s entry into the IMF.

In recent years, Andorra has come a long way in terms of its transformation with regards to transparency and international standardisation. The determination and action of the country has laid out the path to follow, which is that of greater integration at an international level. It is in this scenario that Andorra has achieved a significant milestone and on October 16 became the 190th member of the IMF.

Andorran Banking very positively views the integration of Andorra in all the organisations which favour its presence internationally, its development and economic growth as a country and, consequently, its financial stability.

The accomplishment of this milestone will undoubtedly be a positive move for the credibility and confidence of the country, the economy and for the financial sector in general.

International Monetary Fund (IMF)

This new membership will provide access to the IMF’s technical assistance in areas such as macroeconomic statistics, financial supervision in the fight against money laundering and budget policy.

We share Fitch Rating’s opinion published in its statement on October 23: “Andorra’s IMF membership will provide access to the Fund’s financial resources, and should improve the transparency and quality of reported data. Technical assistance from the IMF could help underpin a post-coronavirus pandemic economic recovery, and address long-term sovereign credit challenge.”

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Economic data for the second quarter

Covid-19 continues to affect worldwide economy and all sectors of the Andorran economy have suffered its effects.

Andorran economy has declined by 21.6% in 2Q20 in comparison to the same period of time last year. This decline is a result of the Coronavirus which has affected all sectors due to the 2 months closure of all non-essential economic sectors.

Nonetheless, pursuant to the Andorran Government’s statistical data published on September 28, the GDP forecasts for the first two quarters of 2020 and the data from the first months of this last quarter, validate the forecasts for 2020 published in July, which expected the GDP to decline by 11,1%.

A resilient financial sector

Thanks to the standardisation work that has been undertaken in recent years, and thanks to the great resilience of our banking sector and its high liquidity ratios, Andorran banks have been in a position to offer financing to the Andorran economic system. The banks have been ready and committed to a quick execution and support of the economic measures approved by the Andorran Government in order to mitigate the economic effects and maintain industry production, work places and the support for families as much as possible.

The Andorran banking system operates under a model of universal banking offering both commercial and wealth management services. This specific feature places the sector in a better position with respect to large European banks due to the lower exposure before payment defaults.

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Making your visit to Andorra safe

Because Andorra cares about the health of its visitor here is a list of protocols and recommendations designed to make your visit safe.

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Skis at the ready?

Our ski resorts are getting ready to open the winter season in a month’s time with the arrival of the first snows and with all the safety measures in place. Skiing is safe!

Don’t forget to visit this paradise of snow and mountains, with its fabulous ski resorts which offer more than 300 km of ski slopes: Grandvalira, Ordino-Arcalís and Vallnord Pal-Arinsal.

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