Over €90 million in lira still in circulation
Over €90 million in Maltese currency remains in circulation, 11 months after Malta introduced the euro.
A total of €25.6 million (Lm11m) in coins, and around €65.2 million (Lm28m) in notes remain unconverted, Central Bank Governor Michael Bonello tells The Sunday Times in an interview today (pages 10, 11).
The Central Bank will continue to exchange coins until February 1, 2010, and banknotes until January 31, 2018.
"Money is still coming in but at a very slow pace," the governor says.
Mr Bonello says experience suggests there is always a considerable proportion of currency which will never be returned. Some of the higher denomination notes might still be stashed away, and maybe even forgotten.
Malta introduced the euro on January 1 following an intense campaign to convince hoarders to exchange their cash for the new currency.
More than €489 million (Lm210m) worth of notes has been deposited since the government began its de-hoarding exercise in preparation for the euro, the governor said on the eve of its introduction.
The Central Bank had estimated that around €675 million (Lm290m) worth of bank notes remained in circulation by the end of 2007.
The lira was introduced in 1972 when Malta had abandoned the British system of pounds, shillings and pence and adopted decimalisation. The pound in Malta was renamed the Malta Lira in 1983.
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lgalea
Nov 16th 2008, 18:32
Karl Abela
As if the lower classes who are mostly employed or small self-employed could stash millions without the Government knowing!
It is not the small fry that the government should check, but the sharks who have villas or more than one, yachts, luxurious cars, several holidays a year, you name it, and see what Income they have declared and Income Tax they have paid over the years and how could they afford such luxuries.
Phil Press
Nov 16th 2008, 17:00
Why another 9 years, for bank notes??.Look at the revenue the government could be making, on the penalties, imposed and the tax generated, from this missing ? money.
Karl Abela
Nov 16th 2008, 16:05
Apparently the richest people in Malta are the poor in disguise and the ones that complain most. Why?
Lets say that half this money is out of the country which went away with tourists... that leaves us with around 45 million euros in old currency that are stashed away somewhere.
I mean, are we so forgetful that we misplaced 45 millions euros? Are we so careless? Are we really so well off that we dont value money anymore? I think not.
Or is it that most of this money is coming from black economy that will come in bit by bit? Is it possible that there were (and still are) so many people who worked without declaring anything?...the type of people that get paid with 'le cash biss jiena mhux cheque hi' ?
...and then we wonder why the government isn't collecting the projected income. I think that the latter is more likely.
Few if any are the real poor people on this island. The problem is that you never know who is who in this blessed country imma l-aqwa li naghmlu l-protesti.