By the end of July 2025, Malta’s Government faced mounting financial pressures, with the Consolidated Fund recording a deficit of €518.0 million. The latest figures reveal that while recurrent revenue grew slightly by €13.7 million compared to the previous year, this increase was far outweighed by a surge in total expenditure, which rose by €592.0 million. The imbalance led to a negative change in the Consolidated Fund of €578.3 million. The largest boost in revenue came from Social Security, which increased by €98.4 million, reflecting continued contributions from workers and employers. On the expenditure side, Programmes and Initiatives accounted for the biggest rise, climbing €218.1 million, while additional spending on Personal Emoluments and contributions to government entities further stretched public finances. As a result of these trends, Central Government debt reached €11,162.4 million by the end of July, an increase of €1,392.7 million compared to the same period in 2024
ECB approves acquisition of MeDirect’s parent company
The European Central Bank (ECB) has approved Czech lender Banka CREDITAS’s acquisition of MDB Group Limited, the parent company of Malta-based MeDirect Bank. In a statement, the bank confirmed it had been informed that the ECB raised no objections to the deal, which will see Banka CREDITAS purchase all shares in MDB Group from current owner Medifin Finance Limited. The transaction, based on a share purchase agreement signed in November 2024, is expected to be finalised in the coming weeks. Banka CREDITAS is part of the privately-owned CREDITAS Group, founded by Czech entrepreneur Pavel Hubáček, with investments across financial services, real estate, and energy. Its banking arm has expanded rapidly, serving over 200,000 clients and managing assets of around €5.2 billion. The announcement confirms earlier reports that CREDITAS was in the final stages of acquiring MeDirect, Malta’s third-largest banking group. MeDirect has been growing its footprint in wealth management and digital banking, making it an attractive target for CREDITAS’s expansion strategy in the European market. (Maltatoday)
St Paul’s Bay Council calls for eco-tax evenue to Fund Local Services
St Paul’s Bay Local Council has approved a motion urging the government to channel tourist eco-tax from local accommodation directly to the council. ADPD councillor Sandra Gauci said the funds are needed to address mass tourism pressures and protect residents’ quality of life, covering street cleaning, waste collection, repairs, and maintenance. She also called for the removal of the €5 ceiling on the eco-tax, describing the current €0.50 daily charge as inadequate. The council debate was heated, with Labour councillors voting against the motion and heckling during discussions.(Newsbook)
