€50m bond issue oversubscribed in hours

@Igalea

Yes Igalea, money coming from prostitution and drugs is being used to buy bonds. How thick can you be? Those are the last people who would buy bonds etc.. because of money laundering etc.. and getting caught by the authorities transferring large sums of money.

The fast oversubscription denotes that it is not the man in the street that applied for shares. It is impossible for the commun man to subscribe in so little time in view of the paper work involved. It is either other banks, insurances and other money lending/manipulators subscribers.

@ S. Borg

Anke l-Etjopja u l-Albanija hemm nies sinjuri u miljunarji pero ma jfissirx li m'hemmx faqar u sahansitra guh.

Well Guys.. If some of you have given some `INDICATIONS` to my question below, (the intensions of which were not political), why not then, don`t we get the OFFICIAL statistics on this kind of cash movements too and not suppositions..!!?? I am sure that the result might be a sort of an interesting idicator for the government to take Certain Actions...

m'ghadniex biex inhallsu l - kont ta l eletriku u ghadna biex ninvestu! Tajba din! Nixtieq inkun naf min qed jixtri dawn il bonds? Li kieku qed jinqassmu bejn kull qassam tal poplu jien nahseb li vera hawn il - gid!

" The coin has two sides " The P.N. apologists are very happy (at one side of the coin ) that these bonds/shares are finding their respectful persons. Sure not the middle and the lower part of society ( the majority of the Maltese generation ). The other side of the coin, are those 40,000 FAMILIES that they are living in poverty line, and the amount is getting bigger every day. If I were you ( P.N. apologists ) I will be happy for what I have,and not what others have,when only God knows from where they brought their money.

Was it our beloved Dr. Fenech Adami, then Prime Minister who said: "Flus, mhux problema"? Well, now it seems that the nation is saying: "Thanks to par idejn sodi". That's our present Prime Minister of course. This is what has happened since the PN came to power 23 years ago.
And Labour still persist in nationalization, monopolies and insults to our MPs. That's not to mention their Doom and Gloom policy. Oh, shame, soon they will have to change story and go back to Fredu's "L'ekonomija qed tikber b'kumbinazzjoni, ghax dal-gvern ma jafx x'qed jghamel."

If one just concentrates for a while, one could do better judgement on the popularity of Maltese issued bonds.

One has to note that subscribers for any of the bonds issued locally amount to around 3000 including financial institutions. These hardly represent the circa 120000 maltese households. The issued bonds make up only a tiny fraction of our money stock.

The proof of the pudding is when trying to sell such bonds on the stock exchange. Taqla fwiedek!!

@Anthony Paris

It's always about PN apologists isn't it. It will always be that way until Labour are at the helm, doing the same things (probably worse) but then it will be ok, it will be fine - it will still be the PN's (and their apoligists) fault because of what they did in the past.

You know Anthony, we've heard this crap over and over the last 20 years- Igaleas and other myopic lejburisties. 16 years of Labour communisim was PN's fault pre-71, 2 years of complete tatters 96-98 was PN's fault because of the way they governed pre 96. The price of oil and the calamities it brings with it is the PNs (and their apologists) fault, because of how they govern, the global financial crises etc. is the PN's fault hands down, Madoff should not be in prison - the PN should, and yet this country has never seen so much progress beyond a PN government, the popular votes have mostly been given to the pn and so on and so forth.

keep on living a lie like the few labour grass roots and those that work at the HQ - if that makes you feel fine.

M.Gauci Ever considered money coming from trafficking in illegal immigrants, drugs, prostitution etc Gauci? You said you assume that they are getting most money from the common people. Do you think that when most of the people are not making ends meet and we have if I remember correctly more than 60,000 in danger of poverty they are getting most of the money from the common people? If so you must be living in another galaxy.

I agree with you Mr Parnis,and i add if i had money to invest i go to Lombard Bank for more secure reasons than of BOV unsecured bonds...and compared with the same interests and maturity.

@ mark gingell
For Farmacewtika read Cheap Labour, Not necessarily in Malta, but worldwide, while the Pharmaceutical companies in Europe spread their manufacturing firms all over the globe where wages are at the lowest, their own citizens, millions of them are om the dole, Do they care, do they hell.

@e ciantar
I am quite informed, from reliable sources. No need for me to make any analysis; I can say that I need €x amount to buy a car and instead I buy a boat. With a little bit of tweaking on the balance sheet (which by the way certain maneuvers are legal) can make it look better. Eg almost 40% of BOVs mid year profits were the result of provisions to losses on investments incurred the previous year because of the Lehman and credit crunch. The investments have since gone up and the 40% moved from one side of the balance sheet to the other giving a picture that the figures is all profit. I know what I am saying, I work in the financial sector.

Is this the same bank as the National Bank of Malta, or is it a different one?

I cannot understand why everything in Malta have to be turned into a political fars.
These bonds could well have been bought by stockbrokers for overseas clients where their interest rates ar very low,
I doubt very much that people on middle or lower income anywhere in the world ever by bonds especially those who have young families and have big mortgages to pay.
We all know that the professionals especially in Malta have a free hand and never issue a tax receipt or as we call it here a tax invoice after a consultation so that the tax man don't know what or how much these people are earning.
This could well answer you question where all this money is coming from.

The PN apologists will be telling us how good things must be in Malta. This is true as long as people keep investing their hard earned savings in unsecured and subordinated bonds. This is a legalized Bernie Madoff scheme. When the time comes to pay Paul, you borrow from Peter, and some more. The question is how long will it last....probably for a long time.

Igalea Bonds last week taken over immediately, these bonds as well. A tax amnesty yields 34 million. Mobile phones exceed population. Previous bonds last year (merely 3 months ago) taken up. Do you really believe that it is only the rich who buy these? Are you so naive that you think the rich people in Malta are Bill Gates? Bir bla qiegh And even so if it was the rich only (which Is not the case - I am not rich and I buy bonds!) the rich get their money from somewhere right? From operating financial,investment activities I would assume which means they are getting money (mostly - not all, but more than likely) from the common people. And if they are getting the money from the common people of Malta thru business it seems that the common people have enough money to buy and buy and buy from the rich, and the rich use the same money to buy bonds. Really Igalea, nobody can say that we dont have poor people here - but overall we're lucky to have it good - and these millions show it.

Perhaps they can now moderate the exorbitant charges which they have been passing onto their customers lately.

j azzopardi and S Borg How do you know who took the bonds? I have no doubt whatsoever that it is the few rich who do not know what to do with their money while the rest of the population cannot even make ends meet.

@Jos Vella Are you sure you have checked your statements about the use of the proceeds with the Bank, its prospectus, or with the MFSA? Please be sure you are informed before you make a financial analysis.

This is really amazing. You do understand that these bonds are both unsecured and subordinated. This means that if things go badly for BOV that you get nothing. You are not even standing on the long line of creditors, you will be out of luck. In addition to this these bonds are being issued to cover previous debts. Think about this for just a minute, you are buying bonds to pay off previous bond holders so that BOV can stay afloat. Talk about robbing Peter to pay Paul. Who exactly is buying these bonds and doesn't anyone understand the increadible riskiness of this type of investment. Maybe a little financial education is in order here, and I really hope that we the people will not be left holding the bag when BOV goes under or doesn't pay off this bond.

May I Ask This Question AGAIN to the `Powers That Be`, AND FINALY GET A CLEAR CUT ANSWER P.L.E.A.S.E.....!! Question... Dear Gentlemen of the `Powers That BE`... MAY we all have a DETAILED Report of who and what bought these and other previous bonds, shares, etc.., (for so far this year, at least), by Category, say.. Private Companies, Business People, Middle Class People, Pensioners, Politicians, Clergy Persons, etc.. etc... etc....!!??!!?? Am I Going To Be That Lucky, this time around...!!??!!?? WILL WAIT AND SEE....!!!!!!!!!!

recession ??? lol. is it really an issue ??? i think more of the perfect excuse for some .

For the record I would like to clarify the fact that I have taken some of these bonds nearly three weeks ago. The story that the bonds were taken up in three hours is just not true. The B.O.V. authorities knows that and the public has the right to be properly informed.
Besides as in the case of Govt. Bonds the amount taken by the individual public should also be known. Thats for honesty's sake.

@j azzopardi and S Borg
You may be right, but a great percentage of the bond issue is taken up by stockbrokers, banks, local investors. Rest assured that who hasn't got the money to pay the tariffs does not even afford investing in bonds. If the country is doing fine why have the banks' profits gone down? The bond issued by BOV are needed to recover a bad debt of a business in the insurance sector gone wrong in Italy, on which BOV was a stakeholder; so that the BOVs financial report does not look that bad when profits are published.

Kemm ghandhom stejjer tal-Labour illum!
L-ewwel l-investiment il-gdid fil-farmacewtika, issa din - x jonqos!!

Good luck to BOV, at least I know that my money is safe for the time being. Yet, do we realise that this is borrowed money on long term.
Announcing its allocation policy by Monday. What does it really mean? Is my Bank going to inform me and give me the names of the subscribers? Of course not!
Deep down we all know who they are, come on J. Azzopardi and S. Borg own-up.

That's the problem in our country. Middle class no longer exists! The few who are getting richer every day and the remaining ones are getting poorer by the hours. If you don't believe me just visit WSC building tomorrow morning and you will see a never ending queue all trying to reach an agreement to pay the water and electricity bill by installments. It would be interesting to know how many were those that subscribed for these €50 million bonds .

Actually, the problem is not that of a general lack of money, but rather its uneven distribution within the Maltese population.

BOV alone raised Euro 70 million today; assuming that Euro 40 million were rolled over from the BOV bonds maturing this month, Euro 30 million were "new money " !

15 million last week 20 million this week and 300million last year in bonds swallowed up in just hours,and everyone complains that the people and country are in bankruptcy mode and we all don't have the money to pay the new tariffs LOL

Ara veru hawn faqar f'dal-pajjiz...