Malta Freeport debt: Lm118.8m

Malta Freeport had outstanding debts of Lm118.8 million as of December 31, 2003, Public Investments Minister Austin Gatt said in reply to a parliamentary question yesterday. He said those funds were used for the development of the freeport and the purchase of machinery. This debt was being discounted from the annual capital and recurrent expenditure votes.

The total amount paid in interest since 1990 has totalled Lm43.4 million.

Dr Gatt said a fund is to be set up for the repayment of $250m from the freeport privatisation revenue. The rest of the debt would be paid in annual amounts according to agreements.

He explained that on January 20 this year the freeport corporation made a gross currency swap agreement with an international bank, where global notes for $250 million were swapped for €200.7 million at an annual interest rate of 6.99 per cent. This meant a saving of Lm286,000 in annual interest payments,

The minister was replying to a parliamentary question by Chris Agius (MLP).

In another question, Labour MP Charles Mangion asked the Prime Minister whether the freeport debt had been assumed by the government as government debt.

Dr Gonzi said it was not the case that the freeport debt had been assumed by the government as government debt.