Church loses €300,000 in Lehman crash

The Archdiocese of Malta has lost €300,000 in the Lehman Brothers crash, just weeks after it had bought the bonds that were selling at a very good yield.

Overall, this does not deal a huge blow since this figure makes up just 0.2 per cent of the Archdiocese's investments of some €151 million.

The figure of €300,000 is being provided for in the Archdiocese's financial estimates for this year, financial controller Robert Agius said during a press conference yesterday on the pastoral financial report of the Archdiocese for 2007.

The report says that last year parishes witnessed an increase in collections and donations for the first time in six years, surpassing the €9.5 million mark. This revenue is believed to be tied to the increase in the number of projects within the parishes, which led to appeals for donations to be more generous.

Going through the accounts during a press conference yesterday, Mr Agius, however, pointed out that the Archdiocese's net surplus plummeted to €186,613 from €1,463,657 in 2006.

Dar tal-Providenza in Siġġiewi was one of the few Church entities to end last year with a favourable balance, of €892,150.

Mr Agius reported that although the home's expenses increased by €137,433, this was counterbalanced by an income of €1,059,864, more than the previous year, when the home had made a considerable loss.

He said there was an inexplicable trend with Dar tal-Providenza: the years in which inheritances were high, donations to the home were also high; and when inheritances were poor, the rate of donations followed suit.

An increase in the number of visitors to the Mdina Cathedral Museum together with an increment in the entry fees brought in more than €232,937.

Income from general investments saw an increase of €412,219 due to interest arrears the diocese received on the adjustments of Church bonds.

Subsidies provided for old people's and children's homes were on the increase, amounting to €556,720.

Total subsidies for 2007 were €976,010, the bulk of which, in fact, went into old people's homes and the media. Last year, the Church's radio station RTK and newspaper Ġens Illum made losses of €135,000 and €81,530 respectively. RTK always registers a loss but each year it gives substantial contributions to fund-raising campaigns.

The archdiocese also incurred a number of expenses because of the employment of 42 recruits, which did not include the 259 priests who were also remunerated by the diocese.

Additional expenses for repairs and maintenance totalled €1,164,690.

The Ecclesiastical Tribunal made a loss of €289,503 last year. The Archdiocese was subsidising tribunal cases by some €3,494 per case.