Updated 1240
EIB opens new Malta office to support local projects
The European Investment Bank (EIB) has opened a permanent office in Malta, marking a significant step in its efforts to establish a presence in all EU member states. EIB President Nadia Calviño and Finance Minister Clyde Caruana inaugurated the office, which aims to assist enterprises in accessing EU funds and developing projects. Over 45 years, the EIB has invested over €1 billion in Malta, supporting health, telecommunications, housing, and infrastructure projects. Calviño emphasised the office’s role in streamlining processes and facilitating financing for Maltese businesses. Finance Minister Caruana highlighted the alignment of EIB values with Malta’s goals of sustainability and innovation. Lawrence Walsh will lead the office, strengthening ties between the EIB and Malta. (TVM)
HSBC receives ‘a number’ of bidders for Malta bank
HSBC Holdings announced Thursday that several bidders have shown interest in acquiring its 70% stake in HSBC Bank Malta. While details about the bidders remain undisclosed, the offers are reportedly non-binding. HSBC Malta is conducting a strategic review, exploring various options, and will convene an extraordinary general meeting (EGM) to seek shareholder approval for due diligence checks, with the earliest possible date in January but likely in late February or March. Although Times of Malta reported prolonged negotiations with APS Bank, HSBC Malta denied knowledge of such talks. Archbishop Charles Scicluna emphasised that APS acquiring HSBC Malta is not finalised. HSBC’s parent company, HSBC Continental Europe, continues to assess all options. (Times of Malta)
Malta’s housing market faces overheating risk, Central Bank warns
House prices in Malta rose by 7% in June 2024, significantly outpacing the Eurozone average of 1.3%, according to the Central Bank of Malta’s Interim Financial Stability Report. This growth, driven by strong domestic demand and favorable lending, contrasts with last year’s 5.3% rise. Mortgage credit expanded by 8.6%, reflecting confidence in the property market, though the Central Bank warns of systemic risks from heavy reliance on property lending. Malta’s economy grew 6% in early 2024, supported by private consumption, with inflation easing to 2.2%. The banking sector remains stable, with low non-performing loans and strong liquidity. However, geopolitical tensions and potential inflation surprises pose risks to continued economic resilience. (Newsbook)
Morning Briefing
GDP grows 4.9% in third quarter – NSO
For the third quarter of 2024, the Gross Domestic Product (GDP) of the Maltese economy registered a positive year-on-year growth rate of 4.9 per cent in volume terms, the NSO said. The services sector contributed the lion’s share of the increase in value added, with an increase of 3.4%, while industry expanded by 1.3%. The increase in Service activities was mainly driven by the growth rates recorded in accommodation and food activities (18%), professional, scientific and technical activities (9.3%), and real estate activities (5.7%). Gross fixed capital formation increased by 5.3% in volume terms while exports and imports of goods and services in volume terms rose by 3.8 and 4.4%, respectively.
Parliament standards Committee reprimands Ministers, rejects motion for Gozo Minister’s resignation
Clint Camilleri and Clayton Bartolo have been reprimanded, with Bartolo required to issue a formal apology in parliament and reimburse the excess funds his wife received as an unqualified consultant, according to a parliamentary committee decision on Wednesday. The committee found both MPs guilty of abusing their ministerial authority by appointing Bartolo’s partner, Amanda Muscat, to a high-paying consultancy role she did not fulfil. Opposition motions calling for Camilleri’s resignation as minister, Bartolo’s suspension as an MP for 30 days, and a full reimbursement of Muscat’s earnings from her consultancy role at Camilleri’s Gozo Ministry were rejected by the Speaker, who cast the deciding vote. Muscat will repay approximately €16,400, as determined by Principal Permanent Secretary Tony Sultana. (Times of Malta)
MCAST students protest on campus in solidarity with lecturers
Students at MCAST’s Mosta Campus staged a protest on Wednesday in solidarity with their lecturers, as negotiations for an agreement with the government remain unresolved. The protest was themed “Tuna Edukazzjoni” (Give Us Education). The demonstration took place on the main road between the Mosta Campus and the Lidl store across from it. Event organisers expressed that MCAST students are “grappling with deep frustration and uncertainty” due to the ongoing industrial action by the Malta Union of Teachers. (The Malta Independent)
