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HSBC had refused OTP Bank as client fearing reputational risks
The Hungarian bank widely seen as the leading contender to replace HSBC in Malta was previously rejected as a client by HSBC due to concerns over reputational risk. According to sources reports, OTP Bank — Hungary’s largest financial institution — approached HSBC’s London office in April 2024, seeking assistance in issuing international bonds. However, following a thorough internal review, HSBC declined the request, citing multiple red flags that raised reputational concerns. The bank ultimately concluded that the proposed deal exceeded its risk threshold and was outside its acceptable “risk appetite”. Key among the concerns highlighted during the due diligence process were OTP’s continued business operations in Russia and reported ties between the bank’s chairman and CEO, Sándor Csányi, and Russian President Vladimir Putin. Despite OTP now being considered a potential successor to HSBC’s Maltese operations, its earlier rejection by HSBC casts a shadow over the bank’s suitability, especially in light of the geopolitical sensitivities surrounding its activities. (Times of Malta)
Malta’s early school leaving rate declines
Malta’s early school leaving rate has declined to 9.6%, placing it just above the EU average, according to 2024 data from Eurostat, the EU’s statistical office, the Education Ministry announced. Early school leavers are defined as individuals aged 18 to 24 who have attained fewer than two O-levels and are not engaged in further education or training. The Education Ministry welcomed the improvement, attributing it to sustained investment and a strategic focus on enhancing educational outcomes. Education Minister Clifton Grima, who last year launched a strategy aiming to reduce the early school leaving rate to 9% by 2030, noted that the current figure marks steady progress from 10% in 2023. He stressed the significance of the decline, pointing to increased job opportunities for youth and broader social benefits. (Times of Malta)
Earthquake felt across Malta
An earthquake that struck off the coast of Catania during the night was felt in several areas across Malta. The 4.8-magnitude tremor occurred at 3:26am in the stretch of sea between Sicily and Calabria, with tremors reported in Catania, Syracuse, and Messina. The earthquake had a depth of 48 kilometres and was located approximately 81 kilometres off the coast of Catania. Various people turned to social media, with localities in the area of Zurrieq seemingly most affected.
Morning Briefing
US Embassy in Malta slated for closure – reports
The U.S. Embassy in Malta may close as part of sweeping federal budget cuts proposed by the Trump administration, according to multiple reports. Malta’s embassy is one of 10 under review, alongside 17 consulates. Other embassies at risk include those in Luxembourg, the Maldives, Eritrea, and South Sudan. The proposed closures align with efforts to slash nearly €30 billion—about half—of the State Department’s budget. The news comes shortly after Somers Farkas was nominated as U.S. ambassador to Malta, pending Senate approval. The embassy moved from Floriana to Ta’ Qali in 2011, occupying 10 acres bought from the Maltese government. The U.S. has maintained a presence in Malta since 1964 and currently employs several local staff. (Times of Malta)
Malta not seeking human rights reform – Foreign Minister
Foreign Minister Ian Borg has confirmed that reforming human rights is not part of Malta’s agenda for its upcoming presidency of the Council of Europe — despite earlier promises made by the prime minister to EU leaders. Human rights convention reform was notably absent when Malta’s priorities were first announced in February, and it was again omitted during Tuesday’s launch event for the presidency logo. The decision to sideline reform can be seen as a quiet dismissal of the Prime Minister’s March remarks calling for it. Borg said that Malta’s presidency will focus on protecting children, empowering youth, tackling violence and discrimination — especially against women — addressing human trafficking and hate speech, and promoting the rights and inclusion of LGBTIQ+ individuals. (Maltatoday)
Elderly Man Found Dead in St Julian’s Bay
An elderly man, believed to be an Irish tourist, was found dead in the sea near the Cavalieri Hotel in St Julian’s on Monday afternoon. The body was spotted floating in the bay at around 12:45 p.m., police told Times of Malta. Emergency services were dispatched to recover the body. (TVM)
