After eight years of low growth sparked by the 2008 downturn and a money-laundering scandal, Andorra’s economy is finally showing signs of recovery. But while government investment to boost all-season tourism and greater bank transparency helps, more diversification is needed. Stefanie Linhardt reports.
The general manager of the Andorran Banking Association, Esther Puigcercós Font, tells Stefanie Linhardt how the country's banks are becoming more transparent, and explains how they are adhering to EU standards despite the country not being a member of the union.
Accusations of money laundering levelled at Banca Privada d’Andorra by the US authorities threatened to destabilise the country's banking sector, so the government had to act quickly to contain the crisis. Now, Andorran authorities are keen to show that this was an isolated case and that the wider banking sector is both closely governed and performing successfully.
Traditionally reliant on neighbour Spain for their customer base, Andorra’s banks have been forced to reassess their strategies in light of the country’s – and the rest of Europe’s – economic malaise. Instead, they are targeting the Latin American market, as well as disillusioned clients of Swiss banks, attracted to a national banking sector renowned for its discretion and stability.