Malta hit by Moody's downgrade of nine EU countries
Moody's Investors Service has adjusted the sovereign debt ratings of nine EU countries in order to reflect what it said was their susceptibility to the growing financial and macroeconomic risks emanating from the euro area crisis.
Malta was downgraded to A3 from A2 with negative outlook.
The adjustments were the following:
Austria: outlook on Aaa rating changed to negative
France: outlook on Aaa rating changed to negative
Italy: downgraded to A3 from A2, negative outlook
Malta: downgraded to A3 from A2, negative outlook
Portugal: downgraded to Ba3 from Ba2, negative outlook
Slovakia: downgraded to A2 from A1, negative outlook
Slovenia: downgraded to A2 from A1, negative outlook
Spain: downgraded to A3 from A1, negative outlook
United Kingdom: outlook on Aaa rating changed to negative
Moody's said the main reasons for the adjustments were uncertainty over the euro area's prospects for institutional reform of its fiscal and economic framework and the resources that will be made available to deal with the crisis.
The ratings agency said the ratings of the following European sovereigns were seen as appropriately positioned: Denmark (Aaa), Finland (Aaa), Germany (Aaa), Luxembourg (Aaa), Netherlands (Aaa), Sweden (Aaa), Belgium (Aa3), Estonia (A1) and Ireland (Ba1).
Moody's review of Cyprus' Baa3 rating, as announced in November 2011, is ongoing, while the developing outlook on Greece's Ca rating remains appropriate as the rating agency awaits clarification on the country's debt restructuring.
Moody's has also downgraded the rating of Malta Freeport Co. to A3 from A2.
WHAT COULD MOVE THE RATING UP/DOWN
Moodys said downward pressure on the rating could develop if Malta’s economic growth prospects deteriorate significantly, thereby obstructing fiscal consolidation and leading to a significant further deterioration in
the sovereign’s key credit metrics.
The rating could also be downgraded if an intensification of the euro
area crisis were to result in materially higher cost or constrained funding conditions for the government.
A further deterioration of macroeconomic conditions in Europe, leading to material fiscal and debt
slippage in Malta, could also pressure the rating.
Conversely, the negative outlook on Malta’s sovereign rating would be changed to stable in the event of a sustained improvement in investor sentiment across the euro area.
"Although unlikely in the foreseeable future, the government’s ratings could move upward in the event of a significant improvement in the government’s balance sheet, leading to greater convergence with ‘A’ category medians," the ratings agency added.
"Substantial structural reforms focused on enhancing competitiveness and boosting potential output growth rates would also be credit-positive."
GOVERNMENT REACTION
The Maltese Finance Ministry in a reaction noted that Moody's had downgraded Malta's ratings because of the deteriorating financial and economic situation in Europe. The current situation was having an impact on investor confidence and Moody's had therefore revised growth prospects downwards.
The ministry said the slowdown in economic growth presented major challenges for financial sustainability and therefore strengthened the government's decision to rein in its spending and focus its investment on those economic sectors which created most jobs.
It noted that Malta was one of only two countries to have reduced its deficit in 2010, at the height of the financial crisis, drawing praise from the EU, which lifted the excessive deficit procedure.
The government said it would continue to offer incentives to encourage investment and job creation, and it would continue to boost sectors such as tourism where the MTA had been given a bigger budget.
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John Micallef
Feb 14th, 16:30
Load of Crap, this Moody. These grading hel pno-one. When hey upgrade someone, then risk lifting expectations too high, only to be pulled down again.
I wonder how Moody were doing a few years back with Greece...Had they downgraded it as they should have?
Message to Moody (as if they need my message :-)) - let the market do the grading.
pat muscat
Feb 14th, 16:00
Darba fix-xahar se ikollna downgrade? Jekk hu hekk Alla jghina! Viva il-finanzi fis-sod..iz-zejt tiela f'wicc l-ilma u se jifgana!
P Buħaġiar
Feb 14th, 15:45
Malta: downgraded to A3 from A2,> negative outlook
GonziPartit Negativ: dowgraded 35 MP's> to 34 MP"s> negative outlook.
Students leaving school at early stage the 2nd from bottom EU statistics> negative outlook
People working per ratio to population> Last> 56% > negative outlook
Instability in Goverment> 1st> negative outlook
Fresh investment decreased by 23%> negative outlook
negative negative nagative
pat muscat
Feb 14th, 14:59
Taht Gonzi se nispiccaw fl-ahhar division. Diga ilhaqna lil Italja, u jekk dawk il-40 miljun ewro li Dr Gonzi ipprova jahbi lil EU mhux se jitnaqqsu-easy fil-fehma tieghu jaqta il-gravy train tal-blue eyed consultants-se nispiccaw a dysfunctional country; imbaghad hbieb, naraw il-martirju: kemm Nazzjonalisti u Laburisti!
J Debrincat
Feb 14th, 14:51
I think it is safe to say that the downgrade, whilst not accurately reflecting our current status will influence and shape our future. Good luck!! I am glad I got out when I did although I look forward to coming back and buying some cheap property soon!!
VINCENT WILLIAMS
Feb 14th, 14:00
In the EU there are 27 countries. Only 9 where downgrade including Malta. Therefore there are many countries in the EU that do not have the economic problems that Malta has. Besides GonziPartitNegattiv is not telling the whole truth about the present economic and political situation of Malta to the Moody's and to such other International Bodies. Other wise Malta's downgrading would have been much lower than it is at the present time.
Does Moody's knows that the public debts of all the public entities amounts to millions and millions of Euros?
Is Moody's aware that the Government owes millions and millions of Euros to the Medicine Importers?
Does Moody's knows that the Malta Government owes millions and millions of Euros to the Police force for overtime?
Does Moody's knows that for the building of the new Parliament and for the open air theatre the Government of Malta has no money at the moment to pay it?
Is Moody's aware that the Government of Malta has a great problem of majority in Parliament? So much so that the Malta Government is avoiding every vote in Parliament?
Sorry I have to stop as the list is to long to continue..........as Moody's stated......Malta's outlook is negative as negative as GonziPN !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Mr B Brincat
Feb 14th, 19:43
Actually, it was six countries downgraded, not nine. The other three just had their outlook set to negative.
Mobbie dickvince
Feb 14th, 13:01
If Malta was downgraded yet AGAIN this is going to hit the tourist industry very badly as we rely on mostly tourists from the countries above, so its enevitable that and no doubt Malta will have a further negative outlook in months to come, till the rest pick up and so will Malta, as far as Britain looking negative, they are on their own anyway isolated so we are not worried but to stick to the euro countries. Isolated Britian thats their problem they always want to be different in everything the rest of europe does, no sympathies there .
Jonathan Deeley
Feb 14th, 15:55
Mobbie - please could you explain how a ratings downgrade has an effect upon tourism ? Personally I doubt whether it is a factor when most people are considering their destination for a holiday.
As to your second point, in which you claim that Britain has always enjoyed being isolated, this is a sweeping generalisation which has no basis or substance. Britain joined a 'Common Market', which has - on the whole - worked fairly well albeit at the expense of developing nations. Our decision not to join a single currency looks wiser by the day.
J Axiaq
Feb 14th, 12:53
Mhix sitwazzjoni sabiha u b'GonziPN u b'MuscatPL mhix se tkun facli. Il-problema l-kbira hi li d-distanza bejn is-sinjur u l-fqir se tkompli tikber ghax is-sinjur ser jaqla iktar interessi u l-fqir/middle class (middle class dejjem tersaq lejn il-faqar) se jhallas iktar taxxi. Dik hi r-realta. U Gonzi u Muscat jistghu jigdbu kemm jridu!
P Buħaġiar
Feb 14th, 12:46
The One radio and One TV stations are having a confortable numb. Can you please refresh peoples mind with the promises done by GonziPartitNegative, before 2008 elections, saying that 'Malta for the first time in history, in 2010 is going to have a SURPLUS BUDGET' Do One stations have recordings of such statements?
m. borg (slm)
Feb 14th, 14:14
Don't worry mate you'll hear about it when the oportunity arises.
Victor Buhagiar
Feb 14th, 11:40
Are we now in a situation where being in the EURO Zone is working against us or has the Governement been saying half truth?
m. borg (slm)
Feb 14th, 11:51
Get yourself Dr Alfred Sant's new book about the euro. It is an eye opener.
Lyn Avonwood
Feb 14th, 11:17
I think you need to hear what some commentators are saying. The bonds find themselves traded in the secondary markets. A bond can be oversubscribed locally and held by a local, but in the secondary markets where the yields to maturity are set, bonds can change hands with anyone.
Yields will go up people. First sign of a crash are those people in denial , convincing others that the status quo is good, etc, not that bad. Cant get any worse. Then comes anger. Have you forgotten whats happening in Greece, Spain etc. First everything was ok, now watch the chaos.
Property markets are going to tank, brace yourself, dont be the last guy playing the piano on the titanic.
Let someone else be the hero.
m. borg (slm)
Feb 14th, 11:08
Only apologists, lackeys and the Sunday group of gobies would now believe Dr Gonzi's declarations that all is well on the financial front.
.
Once more Dr Gonzi has come out fighting ignoring the signs on the wall, he is right and everybody else is wrong even MOODYs
A Dimech
Feb 14th, 11:02
When GonziPN says Malta has the lowest unemployment rate , what he should also say is that Malta has the lowest employment participation rate in Europe.
That is a a percentage of gainfully employed to population - Malta is at the bottom end of teh EU;
GonziPN only quotes statistics which are "good" - they never mention statistics which place Malta at the bottom of the leaque.
But Moodys are no idiots!! they know exactly where we are - hence the downgrade!
Carmel Cilia
Feb 14th, 11:00
Dejjem iwahhal f'xi hadd. Din id darba dar fuq il-honey tieghu l-Ewropa. Skuzi ta sur gvern l-Ewropa mhux 27 pajjiz fiha mela kif gew affetwati 9 biss. Liswed ghadek ma xbajtx tghidlu abjad u dan fejn jidher ahseb u ara fejn ma jidhirx x'hemm mahzun ghal min irid jitla warajk. Ibku lilkhom u lil uliedkom qal is-Sinjur.
carmelo buttigieg
Feb 14th, 10:28
If our economy and finances were in a good state than Moody would never have downgraded us once again. Apart from Denmark and Sweden, Luxembourg, Finland, Netherlands, Germany, Belgium and Estonia all form part of the Eurozone and their rankings were not downgraded by Moody.
Mr Andrew Camilleri
Feb 14th, 12:52
Yes, and Govt keeps on telling us how much better off we are then the Greeks, Italians and Spanish but never tells us that we could be much better off like the Germans, Belgians, etc. We always compare ourselves to those doing worse than us just to make us feel good. Perhaps they should start comparing us to Somalia - that would make us feel super-grand.
Tony Berkeley
Feb 14th, 10:24
It's the Maltese decease again. Who shall we blame for this? We will try the government again. Which party.. Well it's got to be the PN as they are in the hot seat. If one looked around, no country is immune of the current situation, ebern the Franco German twins. Malta's economy is largely based on tourism, when money is short, first economy one does is by not going on holiday, or having one at home. So Malta's income takes a knock, and as its a major importer, Malta has to find more money to pay for all the goods it imports. One does not have to be very clever to work this one out, irrespective if the sovereign debt is sourced within or abroad.
Paul Bartolo
Feb 14th, 10:13
Sfida kbira ghal pajjiz zghir bhall taghna, pero ejja ma ninsewx li MALTA ghandha:
= Il-5 l-INQAS rata ta' QGHAD fl-UE. Il-QGHAD f'Malta huwa ta' 6% filwaqt li ta' SPANJA huwa ta' 23%
Il-fatt jibqa li d-downgrade ta' Malta sar minhabba s-sitwazzjoni ekonomika madwar l-Ewropa.
Din hija REALTA u l-ebda partit ma jista jahrab minnha.
Lawrence Fenech
Feb 14th, 10:37
@Paul.
Dahhaqtna Pawl.
Carmel Cilia
Feb 14th, 11:03
Paul jekk fi Spanja in numru ta nisa jahdmu jinzel kif inhu taghna il-Qaghad jispicca habib. F'kelma wahda li kellhom f'Malta in nisa japplikaw biex jahdmu bl-istess rata ta Spanja il-Qaghad hawn ikun ikbar minn t'hemm biex l-abjad nghidulu abjad u l-iswed nghidulu iswed habib.
P Buħaġiar
Feb 14th, 10:07
Dalwaqt nisimghu lil- Gonzipn jgħid, li huwa fl-interess tal-pajjiż li ma jgħamilx elezjoni qabel 20 sena oħra, u imn ALLA li hemm HU Prim Ministru par idejn sodi, jew sar Dejn għoli
Charlie Zahra
Feb 14th, 10:55
Gonzi tghidx hmerijiet aktar ma tistax tigik wahda tajba sewwa Malta u anke Fl'Ewropa, kollox ghan nizla,mhux ahjar twarrab min hemm ghax mintiex tajjeb biex tmexxi u halli lil PL imexxi
Mr Kevin Zammit
Feb 14th, 09:41
This downgrade will mean that the government will have to pay higher interest on debt. Please articulate these things otherwise they are meaningless letters to the wo/man in the streets. Those that believe this is not the case for us because debt is internal is wrong and a lie. Debt in the end finds itself in foreign market otherwise it is worthless so the same interest rates need to be paid. For example HSBC is now a foreign bank and interest paid on debt held by HSBC is going out of the country. The same applies to all financial companies etc. Locals do not buy debt directly but go through a middle man who in turn buys in large chunks. So again who really holds that debt?
Now on the other hand. I borrow usually because it makes sense to do so. A company in the hope to invest and make money which in turn pay off the debt. You buy a house in theory because it makes more financial sense than to rent so you borrow.
This debt we have has been accumulated by the nationalist government. No labour government can be blamed for all of it. Lets give labour 25% if you really want to but not the +70% we currently have. Also clearly moody's not convinced this government has a sustainable plan.
Last point ... the UK is not in the Euro and they were still downgraded.
The fundamental problem with the euro is that Germany, England, France and Italy need to join politically. Until that happens the euro will remain a limping pigmy but at the end of the day our finances are ours only. The euro is not causing us to borrow more. As someone here pointed out embarking on on a 100 minllion euro construction project to build a parliament building to help a sick construction industry is not only folly but a sure recipe for disaster the likes of Spain.
Joe Vella
Feb 14th, 09:58
Perhaps the Government have to pay a higher interest rate for its' borrowing. However, at the end of the day no capital in the form of interests payment leave the country if that debt is locally held.
Jonathan Deeley
Feb 14th, 10:00
Kevin - a few points: HSBC is not a foreign bank, it is registered as a company in Malta and its shares are traded on the Malta Stock Exchange. In fact, if you wish to make a decent investment then I suggest you consider purchasing equity in this company because their dividend is currently yielding more than 5% !
Secondly, we English can't even agree with the Scots, Irish, or Welsh, so what chance is there that we will ever agree 'politically' with the Germans, French, or Italians !
Joe Vella
Feb 14th, 10:06
how much the unproductive 8600 that were employed on the eve of the 1987 election contributed to the overall deficit over the years. I say unproductive not because out of respect for these individuals, but for the fact that their employment, at no fault of theirs, contributed nothing to the GDP of Malta over the years of their employment.
Mr Kevin Zammit
Feb 14th, 11:06
@Mr. Deeley
True it is a locally registered company but the mother company is English and profits go to the mother company and do not stay here. Having said government debt is repackaged and resold on foreign markets anyways as we have learned following the collapse of Lehman bros etc. not to mention the current problem with Italian debt. In Italy until a few years ago the same was being said until a serious exercise was made to find out who holds what. In short I will only beleive this until and when I see exactly who holds what which I know will never happen because of data privacy and protection issues. The system is flawed ergo countries that are in trouble now.
As for the UK ... my comment was purely conjecture and incorrect in the sense that my personal wish is to see the UK integrated politically with the rest of the EU because I believe England would be a major asset. However France and Germany uniting is not an impossibility now given Italy is proving to be wiser than otherwise thought. If this state of affairs continues and the eurozone gets rid of those that do not want to exercise self control the eurozone will become much stronger than it currently is. The real problem is Germany. Unfortunately they are currently mistaking the woods for the trees however in the end debt cannot keep accumulating for ever so its only a matter of time.
Even in the case of a clearly inevitable collapse of the euro Germany will be loosing a lot of money so common sense tells me the best hey can achieve is to build a firewall around one solid group and let the laggards sink.
In the end what does not kill you will make you stronger as the Brits like to say :)
Carmel Cilia
Feb 14th, 11:07
@Joe Vella that is what exactly happened at AirMalta siehbi u bilhaqq lejlet l-ahhar elezzjoni fil Gozo channel t'qabdu jahdmu 30 ruh meta ghandna dejn ta aktar minn 5 billjun ewro mhux bhal fl1987 meta kellna kaxxa mimlija deheb u aktar min billjunewro fiha. Tafu tisthu jew.
Mr Kevin Zammit
Feb 14th, 11:17
@Joe Vella ..2012 -1987 = 25 years - 8600 * say 24,000 euros per year for 25 years = 206,400,000 thats 206 million over 25 years. Even if you do assume that these people have cost you this much without giving you back anything or that otherwise you would have had to pay other costs until they become employable in the private sector thats a spec of dust (4%) compared to the circa 5,000,000,000 that the government now owes. Thats why I said give labour 25% if you want cause I knew someone like you were coming up with something like this. As you can see I am being more than generous so please blinkers off and think of the country before the party. This is clearly a mismanagement of funds to the extreme which keeps going on year in year out and whoever comes to power needs to address this situation.
Joe Vella
Feb 14th, 09:31
The Gloom and Doom crowd is out in force today and do not know what they are commenting about. If anything else the downgrade confirms what the Prime Minister have been saying all along. Moody's downgrade doesn't reflect on Malta's economic performance but on the possible turn down of the economies that Malta trades with and the effect that would have the those economies retract. Also, this downgrade deals with sovereign debt. Unlike many countries, Malta's debts' is locally held; and as a result Moody's downgrade have no impact on Malta since when the Government needed to borrow did so locally. Each time the Government issued a call, The Government not only raised the necessary money needed, but each call was oversubscribed. For the benefit of the Gloom and Doom Crowd the major difference between Sovereign held and locally held debt is that no capital in the form of interest is leaving the Country since Malta's' debt is held locally. Meaning more money in the pockets of Maltese individuals and Maltese investors.
Mark. Galea
Feb 14th, 09:30
ghandna bzonn is-salvatur il-gdid ... bil-par idejn bl-ingwanti ... halli jsolvilna l-problemi kollha ... nibdew b'rohs "sostanzjali" fuq id-dawl u l-ilma, zieda fil-pagi, u nistghu nigu naqghu u nqumu minn Moody's u l-bqija ...
Joe Vella
Feb 14th, 09:49
Mark Galea, " u l-bqjia" tieghek tissaraf illi Malta tispicca bhal Grecja.
Patrick Zammit
Feb 14th, 09:29
What does one expect from the corrupt EU which whilst forcefully meddling in its member countries' affairs, has its own accounts (the EU's) not being signed off by its own auditors for the past consecutive 17 years?
P Buħaġiar
Feb 14th, 09:19
I heard this morning at Ċikka tal-Merċa shop, Some GonziPn supporters are blaming Franco Debono for this all situation of instability.
j brincat
Feb 14th, 09:15
@Joe Spiteri Gauci
"Jahasra meta naqra l-kumenti ta hawn taht, ma nafx jekk nidhaqx jew nibki"
I would cry!
Why was the same treatment not meted out to Denmark, Finland , Germany , Luxembourg , Netherlands Sweden?
(jb)
mario gellel
Feb 14th, 09:28
WELL SAID. BUT FOR THE GONZIPN PROPHETS THEY ARE NEVER TO BLAME. ANZI MA QALUX LI MOODY QEDA TIGDEB UKOLL.
Joe Vella
Feb 14th, 09:39
j. brincat
Frankly, I do the same when I read your comments. For you the Gloom and Doom Crowd all is Black and white.
Perhaps the size of the economies have something to do with it. Perhaps the economies of these countries do not depend on foreign markets for exports as the others do. Perhaps the majority of these countries debts is locally held. Perhaps giving the size of these countries economies give these Governments more more room to manoeuver in case of a recession.
edward ciantar
Feb 14th, 11:20
@Jvella
and I with your :)
Mr Marko Porenta
Feb 14th, 09:12
USA doesn't want that european economy to recover... also it doesn't want that EURO do better than US Dolar... so that's why they are demolishing european economy... it would be better if EUROPE would have it's own investrors service and would downgrade US economy...
Tony Busuttil
Feb 14th, 09:01
Ekonomija soda !!!!!!!!!!!!!!!
Grecja 2
dalwaqt naraw lill Gvern jahrab bhal 1996
qed nghixu hajja ta gideb
Joe Vella
Feb 14th, 09:43
Tony, for you comparing Malta with what Greece is experience only shows that you are ignorant to the facts as to why Greece is in the present situation.
Lyn Avonwood
Feb 14th, 08:55
The downgrade will affect the interest rates on government bonds, pushing yields up.
This in turn will impact anyone borrowing on loans for construction, property financing etc.
Last time I checked this was about 40% of Maltas economy if not more.
Whoops , I see a crash of Spain property market coming .
Antoine Zammit
Feb 14th, 08:53
VIVA R-REBBIEGĦA L-ĠDIDA!!
R Axisa
Feb 14th, 08:48
Ma nistax nifhem jien, mela daqqa l-gvern jghidilna kemm hawn pajjizi fl-Ewropa li sejrin hazin filwaqt li ahna konna bilghaqal u sejrin tajjeb, meta l-Fitch zammew l-istess grade ghal Malta. U issa ghax Moody ghamlulna downgrade, inwahhlu fis-sitwazzjoni ekonomika tal-Ewropa. Jekk Malta, skond il-gvern, sejra tajjeb meta paragunat mal-pajjizi l-ohra ewropej, imisshom jaghtuna upgrade u mhux downgrade!
peter ellul
Feb 14th, 08:47
notice all northern countries have got good ratings southern politicians are only good to fight and argue between themselves even the populace for that matter
john vella
Feb 14th, 08:43
So, what is the problem?
Allow me to quote our Minister of Finance: ''Nobody owe Greece a living'' or us for that matter.
History repeat itself, after World War One Germany and its people ended a land of beggars, take what was offered, emigrants, because the Allies at the time imposed hard rules on Germany to the extent that she had to buy foreign caol and not use hers. Today it is the other way Germany is doing well, thank you, dictating the rest of Europe. I strongly believe those on top might give you a billion euro but bankrupt you 5 billion.
Noel Gatt
Feb 14th, 08:41
U iva, issa nsibu dawk li huma ghar minna u nikkunslaw waqt li ninjoraw lil dawk kolla li sejrin ahjar minna!
Ara ma twahlu f Gonzi ta...dak tajjeb biss jghamel. Forsi issa jistaqsi lil Joseph ghal xi soluzzjoni!
Mr Daniel Jones
Feb 14th, 08:38
So basically, the 2 main factors pushing economic growth in the past few years have been tourism and construction / housing.
Now the developers have overdeveloped the island into a concrete mess tourists are looking to go to much more scenic islands in the Med and further afield.
As the economic downturn has meant people have less money, newly built apartment blocks are standing empty.
The future is bleak, no matter what the finance ministry propaganda machine tries to tell us. It isn't factors in Europe only, it is the macro economic (meaning what is happening here) factors.
Tighten your belts people. The poor governance of the past years in allowing unrestrained development to ruin the island is going to hit us all hard.
Robert Agius
Feb 14th, 08:37
After years of 'growth' i can't say I've seen or felt any difference....why should a downgrade make a difference? or is this just a lose / lose game?
A Dimech
Feb 14th, 08:37
Where the Nationalists are not saying is that Malta's economy is the "best of the world"??!!!
how come we received this downgrade again?! WHO IS SAYING THE TRUTH?!!
victor caruana
Feb 14th, 08:36
quote: 'focus its investment on those economic sectors which created most jobs'. Oh yes, jobs with contractors below minimum work conditions OR pseudo consultants!!!!
this govt is always in a state of denial.............
A Dimech
Feb 14th, 08:34
GONZIPN = Downgrades!!!
A Cuschieri
Feb 14th, 09:18
Enjoying yourself?
Mr Mario Farrugia
Feb 14th, 08:33
We need Muscat as primeminister to give us an AAA rating with positive outlook .... and much more. Only HE can save us.
B Grech
Feb 14th, 08:33
Malta's credit rating rated the same as Italy's? How can this be when we are supposedly riding the 'maltempata' better than most EU countries?
Joe Vella
Feb 14th, 08:31
This have very little impact on Malta as it deals with Sovereign debt. Malta's debt is for most , about 97% locally held. When ever the Government needed to borrow always did so locally, and every time each call was oversubscribed. Consequently there is no capital in form of Interest being paid leaving the Island.
Carmel Farrugia
Feb 14th, 08:29
And all this while the government instead of making things easier and liberalising like other countries is continuing to restrict practices and stifle the economy through a stew of legal notices such as LN 122, :LN, 44, LN 66, LN 45 etc. Legal Notices issued without any care for the consequences on the companies that are hit by them.
Mr B Brincat
Feb 14th, 08:28
This is a completely different tune to the quoted "How the hell do you do it??" phrase that our dear MPs often hear when visiting abroad.
Hossam Helwani
Feb 14th, 08:27
ahhh it is all so pretty to sit cosy and critisize!
Probably 100000% of comments here which includes me have no idea what and how this mechanism works. I for one knows that Malta is a very small country depending heavily on other countries. I know as well that in dire times like this one can do a lot of good by saying less and not trying to tell the Government what to do. This is world wide and not just local. Of course one has to take serious precautions.
But in reality is there any good in rubbing ones hands in glee just because I dont like this government?
I find it very distastefull , just fanatic partisan chit chat.
Mr Daniel Jones
Feb 14th, 09:03
Just because you have very little grasp of economics, (or maths for that matter - percentages only go up to 100) doesn't mean the rest of us don't.
If the government is doing badly - who else is to blame for a country's economic downgrade? - then it is up to the citizens of that country to speak up.
No, I am neither Labour or Nationalist. I can just see the country has been mismanaged for the past few years. Probably because GonziPN was so surprised at having won the last election they hadn't made any long term plans in the previous tenure.
Ben Agius
Feb 14th, 09:27
I think some of the impacts on Malta would've been felt irrespective who is in government. What is worrying is that Gonzi and his governments continues to gild the lily by saying "we get certificates" and bullshit like that as if to say we're doing well. Well we're not. One of the main features of Malta's economy is the low wages paid to workers. This of course is helping the island stay afloat. Of course not everyone is on low wages! Greece is going to reduce its basic wage to a monthly figure that would make many Maltese workers and pensioners rich if they were getting that amount each month! I hope I got the relative figures right- If I am the Malta Government has been running the economy on the back of low wages etc.
DAVID D. PACE
Feb 14th, 08:25
hemm hu c-certificat dr. GONZI!!!!!! PROSET and keep it up.
Joe Spiteri Gauci
Feb 14th, 08:25
Jahasra meta naqra l-kumenti ta hawn taht, ma nafx jekk nidhaqx jew nibki
Ms Mari Bor
Feb 14th, 10:17
jien nibki meta nara ċertu tip ta' aljenzzjoni. Dik bħal tiegħek per eżempju.
edward ciantar
Feb 14th, 11:17
@ Ms Mari Bor
Like.....
Patrick Zammit
Feb 14th, 08:23
Another reason why we should have never got in the EU and adopted the made up Euro currency.
silvio loporto
Feb 14th, 08:18
So we are on the way down again.
Who are we to blame,this time?
At least we are in the company of Italy and Spain
What does it take for minister Fenech,to realise that he is making a mess of things, and he is just not capable to manage the country's finances.?
John L Galea
Feb 14th, 08:03
Another certificate to the GonziPN!!
Joe Spiteri Gauci
Feb 14th, 08:22
Mr. Galea,
I think that you are living in a outser space, completly out of this world. Obviously, you don't know what is going on out there .... before you post any useless comments, please instruct yourself first.
Thanks
Anthony Psaila
Feb 14th, 08:00
I dont understand a thing about economy. I have 2 questions:
1. what does this downgrade mean ?
2. can this be related to the political instability ?
Joe Spiteri Gauci
Feb 14th, 08:24
Mr. Pulis,
downgraded refers to the trust the foreign investers have in a particular country, the economic situation will be taken into consideration. The plitical situation has nothing to do with downgrading or not
Jo Meli
Feb 14th, 08:25
Re point TWO
No this has nothing to do with Malta's political / government stability, it deals with the EURO situation which the Once Glorious Partito Nazionale, pn for you, boasted on its entry into in the Euro Zone as triumphant.
I consider this Entry the SAME when Benito Mussolini joined Hitler when he thought that Hitler was Invincibile and cannot come down - and we all KNOW the outcome of this Union.
SAME will happen when the Euro comes crumbling down, SOONER than one thinks !
Ben Agius
Feb 14th, 09:31
@ J Meli By the same token that doesn't mean that if Malta didn't join the Euro zone it would be in a better position at this juncture. It probably would have had to devalue the currency to keep up with the problems around in europe. That would've been good for tourism but not good for anything else especially since Malta imports everything! So Malta is and will continue to be between a rock and a hard place.
ALBERT FENECH
Feb 14th, 07:42
Oh no - not again! This is all Joseph's fault of course, not only his, but Jason Micallef, Toni Abela, Anglu Farrugia, Profs Scicluna, Evarist Bartolo, Joe Debono Grech et al. They are all to blame. This has nothing to do with the total incompetence of the GonziPN, the PM himself and of course the Minister responsible for Finance Tonio Fenech. These lads, together with Dr Austin Gatt and the rest of the merry crew have been working hard to create jobs and investment, too busy to worry about the national financial situation and the "negative outlook" predicted by Moody's. However, there is no need to worry friends and fellow citizens. On 29th February there will be a one-man general election in the GonziPN corridors of power and everything will be solved and resolved.
ALBERT FENECH
Adrian Schembri
Feb 14th, 09:38
lol, timesofmalta should really add a like button :) LIKE!!!!!
daniel farrugia
Feb 14th, 07:39
what is dr.fenech going to say now!
vella m
Feb 14th, 07:38
So the puppet-masters downgraded us,Banksters!
Mr charles azzopardi
Feb 14th, 07:32
the only thing stable is my wage as it got deducted and remained so . :( long live recession .. crisis after crisis even our PM finished in one ..
Mr Peter Korsten
Feb 14th, 07:23
"[...] and therefore strengthened the government's decision to rein in its spending [...]"
That's all very nice, but a little bit late, don't you think? If you first rake up a €6bn debt (which is €30,000 for every Maltese who has a job) and still build a bunch of megalomaniac follies such as the 'City Gate' project, the damage has already been done. Generations will be paying off the PN's reckless spending.
Victor Rodenas
Feb 14th, 07:20
When it goes down it is because of Europe,...when it goes up,..it`s our merit !
Mr Joseph Carmel Chetcuti
Feb 14th, 07:19
Someone is telling a fib about the state of Malta's economy! And I am sure it is not Moody's.
Mr Paul Borg
Feb 14th, 07:05
Ahna mhux li tghid Moody jimpurtana, izda li jghidilna Dr Gonzi!!
George Azzopardi
Feb 14th, 07:49
l-aqwa li ahjar mil-Grecja hux .. le mhux min Luxembourg (daqs taghna)!!!
Wenzu Vella
Feb 14th, 06:48
One feels sorry for poor Malta the country of my birth that I love so much. Debt is the killer of household budgets, business and sovereign. Consecutive PN governments have been borrowing to build shiny things to stay in power. Borrowed heavily to give to Greece to please the German and French banks and the poor Maltese people would have to pay for all this. Taxes and more bigger taxes with no end in sight.
Mr Joe Micallef
Feb 14th, 07:59
Shinny things like what Vella. Like an airport, like decent road networks, like decent power generation, like decent telecommunications, like a proper IT infrastructure, like decent hospitals, like a proper freeport, like proper schools, like a proper university, like proper elderly care facilities, like decent ferry boats.
Like what Vella, like what?
Charles Zerafa
Feb 14th, 08:30
Mr. Vella like what the 5000 euros aweek. and us with 1euro, 63cent and 4.68euro like that Mr. Vella I think you are one which have a good earning.
Charlene Zahra
Feb 14th, 08:44
More than shiny I should think they are necessities- I think you too use these 'shiny things' on a frequent basis. Since we have these shiny things it seems taxes are being used wisely, no?
Alfred Vassallo
Feb 14th, 09:27
@Joe Micallef
"Decent road networks'' -'' Decent power generation'' - ''Decent hospital'' .I am sure everyone agrees that at least these three items are FAR from ''DECENT.
edward ciantar
Feb 14th, 11:13
@ JM
Like what? decent road network? decent hospital? decent freeport? decent IT SCity? are you kidding us? go out on the streets.....should be top notch hospital not decent - huge millions over run -....etc etc ... come of it Sir.. we, the citizens, out there expect the best now with all the taxes and bills we are paying.
Mr Joe Micallef
Feb 14th, 11:35
Alfred Vassallo. Yes they are actually more than decent and I am not comparing them to roads built on sand, or St. Luke's or a power station bang in the middle of densely populated areas running on coal.
Edward Ciantar. Other than the above I really wonder how Smart City came into the discussion. That is private money not public.