GRTU urges government to take action against banks
The Malta Chamber for Small and Medium Enterprises (GRTU) has urged the government to take action against the attitude being shown by Maltese banks which, it said, were not lowering interest rates as much as they should.
In a statement, the chamber said that for the second time in a short period of time, the European Central Bank had reduced its rates but some of the Maltese banks felt they should ignore this message and they had passed on to their clients only part of the reduction they were obliged to pass on.
The chamber appealed to the Finance Minister, the Chairman of the Malta Financial Services Authority, the Central Bank Governor and the Director of Fair Trade to ensure that at a time when the Maltese, through their taxes, were guaranteeing the banks’ deposits, the banks passed on to their clients what was theirs by right.
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Alfred Grima
Nov 12th 2008, 20:11
Apart from not lowering interest rates, the HSBC bank is discriminating against those individuals who need to cash a HSBC cheque after 12pm, and do not hold a bank account in the mention bank. MFSA and the Department of Trade please take note.
PACE
Nov 12th 2008, 19:20
What about older people who are trying to save every penny they have hopefully for their retirement???? Not everyone can afford a mortgage , there are some of us who have seen our interest rates on the little savings we have dwindle to nothing thanks to the banks cutting interest rates ????? That does not make us feel good.
Marvin Spiteri
Nov 12th 2008, 19:20
I think the grtu is very right in this. It is not fair that the Maltese banks are adding to there profits and ignoring the clients rights. When the european banks put the interest rates up they are very prompt to raising the interest rates for clients to pay.People need the interest rates to go down in order to encourage them to invest. It is vital for the economy
sGALEA
Nov 12th 2008, 19:10
When did the GRTU members lower prices? When the Government reduced tax on medicines the prices remained unchanged. Where was the GRTU then?
"[People] make their own history, but they do not make it as they please; they do not make it under self-selected circumstances, but under circumstances existing already, given and transmitted from the past.
I Abela
Nov 12th 2008, 19:04
This is simply not right. When you take out a loan, the contract clearly states what rate you are paying above the base rate. Eg if the base rate is 4%, the bank clearly tells you that you will pay 1% above base rate, ie 5%. This is a legal contract binding both parties and signed by both parties. Now if the base rate goes down to 3.25%, your interest should be 4.25%. If for example the bank charges you 4.50%, then you are paying 1.25% above base rate. This is not what you have agreed upon, so there is a breach of contract which could be illegal. Stand up for your right.
malcolm seychell
Nov 12th 2008, 18:44
Well Done to GRTU.
Roderick Marmara
Nov 12th 2008, 18:32
You would expect those managing the GRTU to have at least basic knowledge of how financial institutions work. A typical childish behavior from a Maltese union. Would the GRTU put pressure on SMEs importing goods from the UK to lower prices considering the downturn in the value of the pound?
Randolph Peresso
Nov 12th 2008, 18:29
GRTU is very right. Well done. You are being the most sensible voice from all the social partners.... and by far!!!!
The banks are not being fair. Moreover, they charge a rate above the base rate, which sometimes exceeds 2%. This means that debitors would be paying an interest rate of above 5% !!!!!!! This is outrageous!!!!
carmel tonna
Nov 12th 2008, 17:28
the grtu is risking getting a warning from the mfsa for causing friction/instability in the banking sector.