Vatican posts $5.2 million loss but donations up

(July 12, 2010) The Vatican has posted its third straight financial loss, registering a €4.1 million deficit for 2009. The financial report released by the Holy See's press office listed revenues of €250.18 million against expenses of €254.28 million. Most of the expenses went to support Pope Benedict XVI's activities and the Holy See's offices, especially Vatican Radio, the voice of the pope that is broadcast on five continents in 40 different languages and produced by 200 journalists. In 2008, the Vatican was €900,000 in the red; a year earlier it posted a €9.06 million deficit. The report said the separate administration of the Vatican City state was particularly hit by the economic crisis as well as by high costs to improve the Vatican's telecommunications system and restore its cultural treasures and ensure security. However cost-cutting allowed the tiny state to record a loss of only €7.81 million, less than half the €15.3 million it lost in 2008. The Vatican said annual donations from churches worldwide, the so-called Peter's Pence, were up in 2009, with Catholics donating $82.52 million last year. In 2008, the faithful gave $75.8 million and $79.8 million in 2007. Leading donors were from the U.S., Italy and France. The pope uses the fund to help churches in poor countries and other charitable causes. In addition, the Vatican's bank, the Institute for Religious Works, gave the pope an additional €50 million in 2009 for his charitable works.