Government to issue €50m stock on Monday

The Treasury yesterday announced the issue of €50 million worth of government stock next Monday, a move described by financial analysts as a "surprise".

The issue is subject to an over-allotment option of an additional €15 million. Speaking to The Times yesterday, financial analysts said they were not expecting such a move and could not put their finger on why the government will be issuing such stock.

A number of interpretations can be given to this move but the most likely reason, analysts said, was that the government wants to make the most of the present financial situation since Malta is "flushed with liquidity".

A number of institutions on the island, they said, were not risking investing their money overseas so government stock is the best possible way to invest locally.

Another reason could be that the government still has not reached the maximum stock it could issue according to a Bill enacted after every budget.

Efforts to contact the Finance Ministry were unsuccessful.

The price for each stock will be established on Friday. It will be announced to the Malta Stock Exchange and published in daily newspapers and through a Department of Information statement.

The issue closes either at 5 p.m. on October 22 for any single and/or joint applications which in the aggregate do not exceed €100,000 per person, or at noon on October 24 for applications in the form of sealed bids (auction). However, the issue could close earlier, at the discretion of the Accountant General.

The allotment results of each stock to applicants whose applications are in the form of sealed bids (auction) will be determined and announced within two hours of the closing time of applications by auction.

More information on this stock issue may be seen and accessed in their respective prospectus and on www.treasury.gov.mt.

Application forms may be obtained from and submitted to all members of the Malta Stock Exchange and other authorised investment service providers.