Vatican runs deficit amid economic crisis

Associated Press ,  Vatican City   |  Sat, 07/04/2009 11:41 PM  |  World

The Vatican said Saturday it ran a deficit in 2008 as its finances and donations from across the world were hit by the global economic crisis.

The Vatican posted a budget deficit for a second straight year, though the figures improved strongly from 2007. The Holy See's 2008 deficit was around euro 0.9 million (US$1.28 million), compared with a loss of euro 9.06 million a year earlier.

The financial report released Saturday by the Holy See's press office listed revenues of euro 253.9 million and expenses for euro 254.8 million.

Most of expenses went to support the activities of Pope Benedict XVI and the Holy See's offices, especially Vatican Radio and other media divisions, the report said.

It said the separate administration of the Vatican City state was particularly hit by the economic crisis. High costs to restore the Vatican's cultural treasures and ensure security left the tiny state with a euro 15.3 million deficit, after closing 2007 with a euro 6.7 million gain.

The Vatican said annual donations from churches worldwide, the so-called Peter's Pence, were down to almost $75.8 million from $79.8 million in 2007. Leading donors were faithful in the United States, Italy and Germany.

The pope uses the fund to help churches in poor countries and other charitable causes.

Copyright © 2008 The Jakarta Post - PT Bina Media Tenggara. All Rights Reserved.