No worries: Vatican money is safe

In case you were wondering, the Vatican isn't going under anytime soon:

top official of the Vatican bank has offered assurances that its deposits are safe from the world financial meltdown, an Italian Catholic magazine said Monday.

Angelo Caloia said in interview released Monday, days ahead of publication in Famiglia Cristiana magazine, that the bank only makes safe investments.

"Our assets are solid and we have no lack of liquidity," said Caloia, president of the supervisory council of the Institute for the Works of Religion—the bank's official name.

The bank's depositors are religious orders, dioceses, Roman Catholic charities, other religious organizations and the Vatican itself.

In a rare interview, Caloia said the bank stayed away from derivatives—the financial instruments blamed for many of the steep loses in the current financial meltdown.

Caloia was also quoted as saying that the bank makes no loans and as a result "we have no uncollectable losses." (AP)

The Catholic Church in America, being the richest in the world, is heavily responsible for the operating expenses of the universal Church:

The Rev. Thomas J. Reese in his book "Inside the Vatican" said a cardinal told him in 1994 the bank had $4 billion in deposits and annual income of $40 million.

The Vatican, in its annual financial statement issued in July, reported it had been hurt by the weak dollar as many of its contributions come from individuals and dioceses in the United States. It listed a deficit of some $14 million in 2007.

The Vatican is very prudent with its investments, overall, and it is my rough guess that many Catholic organizations in America try to practice the same prudence. After all, we're not out here to make money, just cover costs.

So don't expect a Vatican IPO anytime soon, the grace of the Holy Spirit never fails.

Ph/t: AmP sister Catherine.