Malta spending €500,000 daily on debt servicing
The latest government figures confirmed that Malta is spending €500,000 every day on its debt serving costs, Opposition finance spokesman Charles Mangion said today.
In a statement, he said that the government was failing in its target to reduce its debt, Opposition finance spokesman Charles Mangion said this morning.
He noted in a statement that whereas in the 2010 Budget the governemnt projected an increase of the debt by €241 million, in the first five months of this year, the increase had been of €290 million.
He noted that the deficit had fallen by €6 million during the same five months, but given that the government had had higher revenue from the tax amnesty and it had removed its subsidies on water and electricity and was spending less on medicines, the deficit should have been narrowed by some €60 million.
Dr Mangion said the Prime Minister needed to explain how spending by public authorities had 'exploded' at the same time as these authorities were drastically raising their tariffs..
He said the government's latest figures confirmed that Malta was paying €500,000 per day on debt servicing, with the debt now reaching €4,200 million.
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Anthony Castillo
Jun 28th 2010, 23:31
What do you guys want to live in misery like we lived in the 70's and 80's because that the only time we could compare because you guys been in opposition for over a quarter of a century WITH THE EXCEPTION OF JUST 20 MONTHS and it was 100% the truth that in those years we live in misery , because the very high people in the MLP itself says that MALTA was run by a TRAITOR not the Nationalist and he also use to go all over the world begging just to bring a SILVER COLLECTION and by treating the WEST that he goes to the EAST COUNTRIES during the COLD WAR. Actually the NATIONALIST have been wining ELECTIONS since 1981,just about 30years.
N.Calleja
Jun 28th 2010, 15:42
Believe it or not.The One News newscaster this moring said that the Maltese government is paying 500 million euro a day in interest!! My, My...there is quite a difference eh!!
lgalea
Jun 28th 2010, 16:47
N.Calleja can anyone make a mistake? What about finanzi fis-sod, ir-riċessjoni mhix se tolqotna, eċċ eċċ? At least she is a news reader not a Prime Minister.
Fenech MD
Jun 28th 2010, 14:08
Imbaghad immorru nsellfu lil Grecja! Ahjar il-bambin itini l-pacenzja.
Stephen Koludrovic
Jun 28th 2010, 13:52
It seems each living person in Malta is forking out 1.24 euros per day just to service this debt.
Julian Vella
Jun 28th 2010, 12:25
Dzan hu l-isbah certifikat ghall-gvern Nazzjonalista u b'mod specjali ghal Dr Eddie Fenech Adami u Dr Lawrence Gonzi. Wara ftit aktar minn 20 sena fil~Gvern irnexxielhom igibu li dan il-pajjiz gharkubtejh. Kieku bil-flus li nfaqna giebna lil dan il-pajjiz fuq saqajh, kien il-poplu jaccetta dan id-dejn kollu. Imma d-dejn kieber daqshekk minhabba inefficjenza grassa, decizjonijiet hziena, investiment bazwi u, sfortunatament, tixhim u korruzzjoni bla razan. Grazzi PN!
lgalea
Jun 28th 2010, 12:03
http://euobserver.com/ Headline news
Bank chiefs forecast eurozone split
Today @ 10:26 CET
Half of the 44 bank chiefs polled in an Economist Intelligence Unit survey said they expect one or more countries to leave the eurozone by 2013, with Greece, Portugal, Spain and Ireland said to be the most likely to go. Thirty six percent forecast a total collapse of the single currency.
l fenech
Jun 28th 2010, 13:46
You are right. For some time now the forecast is that the EU will collapse its a matter of time but not too far.
lgalea
Jun 28th 2010, 11:56
This is the dire situation into which we Maltese citizens have been brought to by the incompetent PN Governments. Imagine what we could do with those €500,000 every day.
M.Gauci
Jun 28th 2010, 15:01
You are living in cookoo land Mr. Galea, devoid of any financial or economic knowledge or reality.
Every country (and most business) have similar scenarios. It does not mean that having a debt is bad, an unserviceable one would certainly be so.
Furthermore Mr. Galea it is being predicted that 2012 is the end of the world. Do you subscribe to that stuff as well?
Veronica Galea
Jun 28th 2010, 17:13
@ M. Gauci Please note that you will be receiving your membership card in the "PN Apologists Club" by mail. We appreciate your blinkered support and you can rest assured that we always look after our supporters and club members.
M.Gauci
Jun 28th 2010, 19:01
Ms. Galea Thank you, but assure you, I have never paid any membership card in any party. I'd much rather give donations than pay memberships. Furthermore I never understood those people who pay memberships, especally life long ones. How could one be so sure that s/he will agree with the party policies in future? On the other hand I have no problem speaking my mind in favour of present policies and debt when this makes economical sense around the world and try to disprove some of the many shallow reasoned arguments Igalea comes up with. When I felt he was right, I said so...but this only happens once in a blue moon.
lgalea
Jun 28th 2010, 23:01
M.Gauci Shallow arguments? Can you deny that it has been through the incompetence of the PN Governments that the country has been brought to its knees and is in this dire situation with more than $4,200,000,000 DEBT after squandering nearly Lm600,000,000 left in Malta's coffer by the PL Government? Is this a shallow argument Gauci? Better remove your dark blue blinkers and wake up to reality Gauci.
David Caruana
Jun 28th 2010, 11:31
Let's just hope we're not taking the same road that our Greek partners are walking through now!
Roderick Micallef
Jun 28th 2010, 11:08
il-famuz statement - 'il-Finanzi fis-sod' missu jsir 'MALTA FALLUTA FIS-SOD' ir-realta u il-figuri juru bic-car li Malta hija effettivament falluta!
Min jaf hux ser jigrilna bhal griegi, li wara li kellna l-istess gvern ghall 25 sena, wara li l-istess gvern biegh l-assi kollha tal-pajjiz hafna minnhom bix-xejn. Wara li gholla t-taxxi u t-tariffi tista tghid kollha, u wara li dahhal xi flus mill-Ewropa (ghadni mhinix cert jekk dahhalniex iktar flus milli hrigna habba l-Ewropa) xorta wahda n-nefqa tal-gvern baqghet tizdied u id-dejn baqa dejjem jikber.
Issa fl-elezzjoni li gejja jinbidel il-gvern u probabli l-istess nies li gabuna f'din is-sitwazzjoni jibdew jghidu li tort tal-gvern laburista li gara li gara u li qeghdin fis-sitwazzjoni li qeghdin fiha, mhux ovvja li jghidu hekk jew?
L-aqwa li niftahru bil-progetti u bil-miljuni u niffanfraw kemm gejjin kumpaniji jinvestu Malta meta l-istess kumpaniji lanqas biss ihallsu lill-haddiema l-paga li haqqhom. L-iktar li nicassa pero jien mhux li jezistu dawn it-tip ta' politikanti imma li hawn nies illi ghadhom jghidulom prosit lill dawn il-politikanti u jirringrazzjawhom u jcapcpulhom!
Kwazi Kwazi nibda nghid u iva, hafna mill-poplu mhux hekk ried, mela haqqu!
Joe Apap
Jun 28th 2010, 13:30
Tista tghidilna min huma dawn il-kumpaniji li ma jhallsux il-pagi li haqqhom il-haddiema
Gordon Farrugia
Jun 28th 2010, 11:05
"He noted in a statement that whereas in the 2010 Budget the governemnt projected an increase of the debt by €241 million, in the first five months of this year, the increase had been of €290 million."
So much for the article last week that the deficit has been reduced. PN apologists can say anything but they can't change simple facts.
Over 4,000,000,000 euros of debt.
A simple maths computation of the €500,000 daily payment means that we are currently paying 182.5 million a year in interest payments just on the money owed!!!!!!!
That's a fast lane to a Greece style default (i.e. tax the hell out of people) unless the government seriously takes hold of the country's finances and at this point I seriously doubt its ability to do so; its been administering this country for over 25 years and has failed miserably when it comes to the country's financial well-being.
Jennifer Montanaro
Jun 28th 2010, 19:51
Charles Mangion's statement just goes to show the difference between spin and truth. Debt servicing does not only include interest but a transfer to a special account of part of the capital to be paid off as well. Charles Mangion obviously worded the statement in a way that one understands, as Mr Gordon Farrugia did without any fault of his own, that government is paying half a million euros daily in interest, which is simply not the case, as the half million include capital. Charles Mangion used typical Labour spin. The truth is very different and it is that our deficit has been certified by the EU at 3.8% despite the deepest and longest international recession in 80 years that has led to deficits of upwards of 10% in many other countries.
lgalea
Jun 28th 2010, 23:05
Jennifer Montanaro what the Gonezi government is doing is continuing to do the same as had been done by Eddie Fenech Adami, getting Malta into more debt to try to service the previous debt, but they entered Malta into a vicious circle of getting into more debt to service the previous debt. Do you remember when Eddie Fenech Adami admitted that when he was told about the debt situation he said "kien sa jagħtini attakk f'qalbi"? Mela kieku kien Prim Ministru llum x'kien jagħtih?