Updated at 2.15pm: adds government statement
The Nationalist Party is expecting transparency in the government decision to buy 49.01% of the shares of Lombard Bank from Cyprus Popular Bank through the National Development and Social Fund.
In a statement on Saturday, it reiterated its position in December when IIP funds were used to buy Bank of Valletta shares.
The Nationalist Opposition had then insisted that this was against the law which included 12 objectives for which the IIP funds could be used.
These varied from initiatives for social, educational and employment projects to measures aimed at strengthening good governance and others relating to health and care of the elderly.
None covered the sale of bank shares.
The Nationalist Party also noted media statements that this was a temporary step. It called for an explanation as to the reasons behind this and how these related to the IIP governing law. It asked if this was really a temporary measure and, if so, what measures would be used to dispose of the shares and when.
The PN, it said, considered the banking sector as strong and competitive so it was a model that should not be changed.
The government should also consult the sector before taking such decisions and the IIP funds should be used for social causes and development.
Earlier, Partit Demokratiku said it wrote to the Prime Minister asking for an explanation on the share purchase agreement.
MPs Marlene Farrugia and Godfrey Farrugia said the Prime Minister should give his explanation in a ministerial statement in Parliament on Tuesday.
They said that when one considered the concern raised by this government manoeuvre, one would have expected that Parliament to have at least been told about it and given the opportunity to scrutinise it.
Parliament had not even been informed about the agreement, they pointed out.
Government statement
While agreement with the fund's decision, the government believed there should be full transparency and there were ways of how this could be done while respecting the fund's integrity and independence.
Decisions within the fund, it said, were taken by professionals without government interference.
It said it was convinced the decision was taken in a context of development as the more the fund grew, the more funds there would be for use on social aims.
It said the PN in Opposition was against the citizenship by investment programme, which was giving the country funds for social and development aims. Had it been for the Opposition, this fund would not exist.