Vatican Posts $19m Deficit despite Rise in Donations
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The Vatican has reported one of its worst budget deficits in years as “the negative trend of global financial markets” did not permit “targets to be met”. The loss was almost 15 million euros in 2011 despite a 3 percent gain in donations.
The Roman Catholic Church posted losses of 14.9 million euros ($18.4 million) last year, with an official statement from the Holy See blaming the deficit on high personnel and communications costs and adverse market conditions.
The Vatican has reported one of its worst budget deficits in years as “the negative trend of global financial markets” did not permit “targets to be met”. The loss was almost 15 million euros in 2011 despite a 3 percent gain in donations.
The Roman Catholic Church posted losses of 14.9 million euros ($18.4 million) last year, with an official statement from the Holy See blaming the deficit on high personnel and communications costs and adverse market conditions.
Bloomberg noted that the high costs for its main job of spreading the faith via Vatican media were draining the Vatican’s finances: Vatican Radio, the Vatican newspaper L’Osservatore Romano and Vatican television all have significant expenses and little or nothing in the way of revenue.
The losses were incurred despite a 3 percent increase, from $67.7 million to $69.7 million, to the Peter’s Pence and a 49 million euros donation from the Institute for Works of Religion, also known as the Vatican Bank, to support the Holy Father’s “apostolic and charitable ministry.”
Peter’s Pence are “donations made by the faithful to support the Holy Father’s charity”, said the Vatican.
In 2010, the Holy See enjoyed a surplus of nearly 10 million euros. However, the 2010 results were more of an anomaly as the city state ran deficits from 2007 through 2009.
In a statement, the Vatican wrote:
[quote] The cardinals present made numerous comments in which they made clear their appreciation at the completeness and transparency of the information they had been given. Recognition was expressed for the commitment to the ongoing improvement of the administration of the goods and resources of the Holy See, and a call was made for prudence and limiting costs, though while maintaining jobs. [/quote]Additionally, the Vatican expressed its gratitude for the “generous support of the faithful and of the ecclesiastical institutions” given the economic doldrums and “exhorted them to continue this good work.”
The Vatican has in recent years made attempts to increase transparency over its finances but has in recent months found itself entangled in an alleged money laundering scandal.
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