The policy requires Vatican departments to close investment accounts held in foreign banks and transfer them to the Vatican.

The new policy was approved by Pope Francis and signed by Jesuit Father Juan Antonio Guerrero Alves, prefect of the Secretariat for the Economy. It will go into effect on an experimental basis for five years beginning on 1 September.

The new rules will ensure that investments will contribute "to a more just and sustainable world" and protect "the real value of the Holy See's net worth and generate a sufficient return to sustainably contribute to the financing of its activities," said a statement published on 19 July by the Vatican Secretariat for the Economy.

"The decision to invest in one place rather than another, in one productive sector rather than another, is always a moral and cultural choice," one of the principles of the 20-page Investment Policy Statement (IPS) says.

The Administration of the Patrimony of the Holy See (APSA) will oversee the Vatican-based investments, estimated at just under 2 billion euros (NZ$3.28 billion).

The IPS is a radical overhaul after years of financial scandals. It strips all Vatican departments of the ability to invest their funds independently.

The existing practice allowed the Secretariat of State to invest directly in a London building at the centre of a corruption trial. The botched deal resulted in a loss of 140 million euros. All the defendants have denied wrongdoing.

"The fundamental objective is to discipline investments and centralise them," said a senior Vatican official, speaking anonymously. "It is more organised, more controlled, more transparent, definitely a step forward."

Discussing finances in an interview with Reuters this month, Pope Francis gave the example of priests who had no financial experience being asked to manage the finances of a department and who, in good faith, sought outside help from friends in the outside financial sector.

"But sometimes the friends were not The Blessed Imelda" the pope said, referring to a 14th-century 11-year-old Italian girl who is a symbol of childhood purity.

Francis blamed "the irresponsibility of the structure" for past financial scandals.

Sources

Reuters

America Magazine

CathNews NZ

While most Vatican offices reduced costs, the Congregations for Eastern Churches and for Evangelization of Peoples significantly increased giving to struggling church communities.

The Vatican said the coronavirus pandemic had a severe negative impact on the Vatican's financial situation, including the deficit in the consolidated budget report for 2020.

Releasing the Vatican consolidate budget report for 2020, Fr Juan Antonio Guerrero Alves, prefect of Vatican Secretariat for the Economy, said, "We come from a culture of secrecy, but we have learned that in economic matters transparency protects us more than secrecy."

The coronavirus pandemic "has given us the possibility of being able to provide additional help at a difficult moment for all humanity, thus making the church present in areas with fewer resources to deal with the pandemic," Father Guerrero said.

On the same day, the Administration of the Patrimony of the Holy See (APSA), which administers Vatican properties and investments, made a summary of its annual budget public for the first time.

APSA reported 14% of Vatican properties they administer are rented at market rates and fund Vatican work and charity.

The remaining 86% is used by Vatican offices or provides housing for cardinals, Vatican employees and retirees. Most of the latter are rented at below-market rates.

In an interview with Vatican News, Bishop Nunzio Galantino, president of APSA, said making the budget synthesis public was "a step forward in the direction of transparency and sharing."

"The release of the balance sheet is a sign of great respect for all those who, with trust and generosity, have placed and continue to place part of their resources in the hands of the Catholic Church," Bishop Galantino said.

"I harbor a secret hope: I hope that the publication and reading of the numbers and the important notes that accompany them will foster more correct and complete information," he added.

Fr Guerrero does not appear discouraged with the budget deficit. "The budgeted expenses for 2021 are the lowest in the recent history of the Holy See. But the savings have been made without diminishing service to the Pope's mission and protecting the salaries and jobs of employees. The support of the faithful is needed."

"The economic situation was worse, but the mission expanded. This is further proof that the criteria driving the church are not economic," Guerrero concluded.

Sources

Catholic News

Vatican News

In a statement, the Vatican acknowledges the "utmost respect for the Australian judicial authorities" and says the Vatican is waiting for the outcome of the appeals process.

It says, (Pell) "has the right to defend himself until the last stage of appeal".

"At the same time, it is important to recall that Cardinal Pell has openly and repeatedly condemned as immoral and intolerable the acts of abuse committed against minors," the statement says.

"[Pell] has cooperated in the past with Australian authorities (for example, in his depositions before the Royal Commission); has supported the Pontifical Commission for the Protection of Minors; and finally, as a diocesan bishop in Australia, has introduced systems and procedures both for the protection of minors and to provide assistance to victims of abuse".

The statement also confirmed the arrangements barring Pell from public ministry and from contact with minors during the course of the legal process.

Vatican opens investigation

Following his conviction, the Vatican says it will be opening its own investigation into the accusations.

"The Congregation for the Doctrine of the Faith (CDF) will now handle the case following the procedure and within the time established by canonical norm," Vatican spokesman Alessandro Gisotti said.

Just when the proposed investigation will take place has not been announced. The Vatican says the investigation could lead to a full trial or an abbreviated "administrative process".

When a deacon, priest or bishop is accused of abuse, the first phase of the investigation generally is carried out by the diocese where the abuse is alleged to have occurred.

If the allegations are found to be credible, the case is handed over to the CDF.

Last October Pell resigned his position as head of the Secretariat for the Economy, where he oversaw the Vatican's finances.

His successor's name has not yet been announced.

The County Court of Victoria, Australia, (December) found Pell guilty of five counts of child sexual abuse against two former choristers in Melbourne Cathedral in 1996.

Pell's guilty verdict was revealed in Australia on Tuesday this week after a court suppression order was dropped.

He spent his first night behind bars on Wednesday and will be sentenced on 13 March.

Pell, who has continuously said he is innocent, plans to appeal the verdict.

Source

• Reuters
• Catholic News Service
• Zenit
• Catholic News Agency
• Image: France 24