The Finance Ministry welcomed the International Monetary Fund’s 2013 mission’s concluding statement about Malta, which, it said, confirmed the soundness of Malta’s financial sector, further dispelling speculation regarding alleged similarities between Malta’s banking sector and those of ailing member states.

“The IMF’s conclusions join other positive appraisals published in recent days by other well-established external observer entities such as credit rating agencies Standard & Poor’s, Fitch, Bloomberg, Namura, and the European Commission. Together, these conclusions represent a credible endorsement of the robustness and resilience of the Maltese financial sector by several respected and established external observer entities at a time of widespread economic uncertainty in Europe,” the ministry said.

It noted the IMF’s conclusion that “the risks of the Maltese banking sector are contained given that the large international banking segment has limited balance sheet exposures to the Maltese economy and negligible contingent claims on the depositor compensation scheme.” It also noted the IMF’s recognition that, despite the turbulence in the euro area, the performance of Maltese banks was satisfactory and, that domestic banks are adequately capitalised, liquid, profitable and, well-positioned to transition into the Basel III regime.

The ministry also agreed with the IMF’s remark that the deficit widened to 3.3 per cent of GDP in 2012 due to the election cycle.

The Government’s decision to revise the 2013 national deficit forecast upwards by one percentage point - from the previous administration’s 1.7 per cent deficit forecast - to 2.7 per cent, was a reflection of this fiscal slippage which continued in the first quarter of this year, and represented a clear sign of this Government’s commitment towards recognising the true situation of the public finances, and its willingness to address it responsibly and decisively.

In this regard, the Government remained committed towards ensuring that the deficit returned to below the three per cent threshold for 2013 and, towards steering the country’s finances towards a sustainable balanced budget in a gradual and prudent manner in order to maintain and presence the economy’s existing macroeconomic stability.

It also remained committed to job creation by further economic growth potential.

The Finance Ministry welcomed the IMF’s support of the Government’s commitment to reduce energy costs for Maltese and Gozitan families and businesses - currently among the highest in the EU – as well as the IMF’s appreciation of Malta’s need to diversify its energy resources so as to address and reduce the country’s dependence on oil as an energy resource.

Report is good certificate to previous government's economic policy - PN

In another statement, the Nationalist Party said the report was a good certificate to the previous government's economic policy.

The report showed that the Lawrence Gonzi led government had been taking the right decisions for the Maltese economy to remain strong and resilient in spite of a difficult international situation.

The PN said that from the opposition benches it would continue to do its part for the economy to remain strong. For the sake of workers, it hoped that the Labour government would not destroy the good that had been done by the previous government.