€100m scheme meant to of­fer pen­sion­ers ad­di­tional rev­enue stream

The Malta Business Weekly - - FRONT PAGE -

Pen­sion­ers who missed out on the 62+ Govern­ment Sav­ings Bond is­sued in 2017 will have an­other chance to ben­e­fit from this scheme, with up to €100m be­ing of­fered, the Fi­nance Min­is­ter an­nounced on Tues­day.

Prof. Ed­ward Sci­cluna was ad­dress­ing a news con­fer­ence dur­ing which he said that, this time round, pref­er­ence would be given to those who had not ap­plied be­fore. The bond is­sue, which will open on 11 June is of €65m, but if it is over­sub­scribed as it was last year, all of­fers would be ac­cepted as long as the over­all value does not ex­ceed €100m.

The bond scheme is meant to of­fer pen­sion­ers an ad­di­tional rev­enue stream through an in­ter­est rate of 3% payable twice a year. Prof. Sci­cluna said that govern­ment took this ini­tia­tive in the wake of the very low in­ter­est rates be­ing of­fered at present by com­mer­cial banks.

Cap­ping for the of­fers has been re­vised down­wards slightly and would be of €8,000 with the min­i­mum be­ing €500. Bonds would not be trad­able but might be re­deemed in “ex­cep­tional” cir­cum­stances such as health rea­sons. There would be a fi­nan­cial penalty equiv­a­lent to 90 days in­ter­est.

So far, about 16,000 ap­pli­cants have ben­e­fit­ted. For this is­sue, those born in 1956 or be­fore may ap­ply but govern­ment was not ex­pect­ing the of­fer to be over­sub­scribed.

If this hap­pened, he said, pref­er­ence would be given to first-time ap­pli­cants, while the rest would be dis­trib­uted through an al­lot­ment pol­icy which would be de­cided by the Trea­sury in due course.

Ap­pli­ca­tions may be ob­tained from banks and stock­bro­kers.

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