MBR_Issue_27 -January 2017 low res

Malta Business Review
MALTA GOVERNMENT SECURITIES
EU TOP STORY
Malta Business Review
Malta Government Securities
2017 Indicative Calendar
Securities with maturity of more than one year
Maximum amount of issuance
The Treasury announces that the issuance
of Malta Government Securities with
maturity of more than one year for the
financial year 2017 has been set not to
exceed € 600 million.
Purpose of issuance
It is planned that the funds raised from the
borrowing programme shall be applied to
finance the Central Government borrowing
requirements for 2017 including:
• The redemption of five (5) MGS issues
amounting to €371,824,689 which are
due to mature as hereunder
20th August
2017 € 71,963,700
3.75% MGS
2017 (IV)
• Financing of Central Government
deficit estimated at €128.3 million; and
• Effecting changes in the Central
Government debt portfolio, as and
when required, in line with the
Government’s debt management
policies.
Types of issuance
The issuance programme will be covered
by the issue of three different types of
securities:
• The conventional fixed rate MGS;
• The Floating Rate MGS (FR Bond)
linked to the six month Euribor; and
• Malta Government Savings Bonds
The conventional fixed rate Malta
Government Stock shall be the Treasury’s
primary financial instrument by which to
fund the central government borrowing
requirements during the year 2017.
Maturity and terms of issuance of
Malta Government Stocks
The maturity structure of the 2017 MGS
issues will be a mix of short and medium
to long term MGS. The exact maturity and
details on whether the offer will be for a
new stock or a re-opening of an existing
MGS will be announced one (1) to two
(2) weeks prior to the opening of each
issuance.
The terms and conditions of MGS issues
will be published in the Government
Gazette prior to the actual date of each
issue.
Collective Action Clauses (CACs) in newly
issued Malta Government Stocks
In accordance with paragraph 3 of
Article 12 of the modified version of
The Treaty establishing the European
Stability Mechanism (ESM), all new MGSs
issued on or after 1st January 2013 will
incorporate the Model Collective Action
Clauses (CACs).
Treasury Bills
Antonio Tajani
elected president:
“I will be a
spokesman for the
whole Parliament”
Antonio Tajani was elected president
of the European Parliament on 17
January, succeeding Martin Schulz.
Tajani, an Italian member of the
centre-right European People’s Party
(EPP) group and vice-president of
the Parliament, received 351 votes in
the fourth and final round of voting,
compared to 282 votes for Gianni
Pittella, the Italian leader of the S&D
group. His term in office will end in
2019, when the next elections for the
European Parliament will be held.
The election took four rounds of voting
over 12 hours. At the press conference
following the election, Tajani said: “This
was a long day of democracy."
The new president also thanked his
predecessor Martin Schulz for the work
he did as well as the MEPs who voted
for the other candidates, telling them he
would be a "president for everybody".
Tajani said he would seek to ensure that
Parliament would be strong and have its
views heard by the Council, representing
national governments in the EU. He also
said he dedicated his election to the
victims of last year's earthquakes in Italy.
The election on 17 January started at
9.00 CET with speeches given by the
candidates and concluded 12 hours
later with the announcement of Tajani
becoming president. In addition to Pitella,
the other candidates were Helga Stevens
(ECR, Belgium), Jean Lamberts (Greens,
UK), Eleonora Forenza (GUE/NGL, Italy)
and Laurentiu Rebega (ENF, Romania).
Guy Verhofstadt, the Belgian leader of
ALDE, was also a candidate, but withdrew
before the first in favour of Tajani. Tajani
received the most votes in every round
and the final round was only between
him and Pittella. MBR
Tajani served in the Italian army and worked as a journalist before entering politics
with Forza Italia. He was first elected to the European Parliament in 1994 and served
as a spokesperson for Italian prime minister Silvio Berlusconi, the leader of Forza
Italia, in 1994-95. He became the commissioner in charge of transport in 2008 and
take over responsibility for the industry and entrepreneurship portfolio in 2010.
Tajani, who holds a law degree and is married with two children, was re-elected as
MEP in 1999, 2004 and 2014. Following his latest re-election he was elected vicepresident
of the European Parliament. He is the Parliament’s 30th president and the
15th since the first Parliament elections in 1979.
Avoid unnecessary legal costs when chasing your debts
5th
September
2017
FRN MGS
2017(V)
€25,000,000
Alongside the conventional fixed rate
MGS, the Treasury is expected to offer a
limited amount of the Floating Rate MGS
linked to the six-month Euribor via the
auction system for institutional investors
as well as a limited amount of Malta
Government Savings Bonds for pensioners.
Frequency of issuance
• Auctions will continue to be held on
a weekly basis, typically on Tuesday
of the auction week.
• The maturity structure of issues
will include a mix of 28-day, 91-
day, 182-day, 273-day and 364-day
Treasury bills.
Creditinfo Pressure Letters
An alternative method of collecting money owed to you
that is both Inexpensive and Effective
6th
November
2017
4.25% MGS
2017 (III)
€263,853,300
Ex-Church Property Stock redeemable
between 1st January 2017 and 31st
December 2017
7% MGS 2017 (I) € 668,998
7% MGS 2017 (II) € 10,338,691;
The Treasury intends to fund the financing
requirements for 2017 over four (4) to five
(5) issues. The first MGS issue is expected
to be launched in February 2017. The
issuance of the Malta Government
Savings Bonds is expected to be launched
in the second half of 2017. As part of its
issuance strategy, the Treasury will need
to retain the flexibility and capability to
adapt quickly to changing market and
other conditions and, where necessary,
review and readjust the amount that will
be allocated for each issue as well as the
intervals of issuances.
• The issuance is expected to focus on
the 91-day and 182-day tenor.
• An issuance calendar of Treasury
Bills showing the tenor, the auction
date and the issue (settlement) date
will be published in the Government
Gazette on a monthly basis for the
next month.
• The Treasury Bills Prospectus may
be viewed under the Treasury Bills
section on the Treasury’s website at
www.treasury.gov.mt. MBR
Source: Ministry of Finance/DOI
Close to €500,000 of
debt paid back in 2016 alone
2131 2344 - info@creditinfo.com.mt - www.creditinfo.com.mt
Over 45,000 letters sent on behalf of
companies and individuals.
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