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24.09.2020 NEWS IN August, the Central Bank of Mal- ta's Business Conditions Index im- proved slightly when compared with the previous month. However, the in- dex remained significantly below its long-term average, reflecting the excep- tional economic environment triggered by COVID-19. e Economic Sentiment Indicator edged up when compared with the pre- vious month, while remaining well be- low pre-pandemic levels. e increase in this indicator mostly reflects im- proved sentiment in the services sector and in industry and, to a lesser extent, among retailers. By contrast, confidence fell in the con- struction sector and among consumers. Sentiment remained negative in all sec- tors. In July, the volume of retail trade and industrial production fell in annual terms, though at a slower rate when compared to that in June. Annual growth in development per- mits for both commercial and residen- tial purposes remained negative, though the number of residential development permits issued since the start of the year remained above the historical average. e number of registered unemployed and the unemployment rate fell when compared with the preceding month, with the latter remaining relatively low from a historical perspective. Inflation remained at low levels in July as growth in consumer prices deceler- ated. e annual inflation rate based on the Harmonised Index of Consumer Prices fell to 0.7% in July, from 1.0% in June, while inflation based on the Retail Price Index edged down marginally to 0.6%. Compared to the surplus observed a year earlier, in July, the cash-based Consolidated Fund recorded a deficit, reflecting the impact on revenue from the slowdown in economic activity due to the global spread of COVID-19, and to the expense associated with ongoing government support measures to mit- igate the economic effects of the pan- demic. e publication also reports on re- course to the moratorium on loan re- payments offered by domestic credit institutions to residents of Malta in re- sponse to COVID-19. e value of household and corporate loans subject to a moratorium at the end of June edged up to €1.8 billion, equivalent to 16.0% of related outstand- ing loans. In April, the Government launched the Malta Development Bank COV- ID-19 Guarantee Scheme, to guarantee new loans for working capital granted by credit institutions to businesses im- pacted by the pandemic. As at end July, 340 facilities – corresponding to total sanctioned amounts of €238.0 million – were approved. Central Bank of Malta Economic Update highlights improved sentiment in services sector and industry THE HSBC Malta Foundation, HSBC Malta employees, and a number of MCAST students who are presently do- ing an apprenticeship with HSBC Bank Malta, have been supporting a number of initiatives during the summer months. In addition, they have also been helping Skolasajf to deliver a more varied pro- gramme to participants. e MCAST students have, in fact, volunteered nearly 200 hours to Skolasajf and also to a number of NGO's like Fon- dazzjoni Patrimonju Malti, JAYE, Nature Trust and Inspire. Among the projects and activities to benefit was "Building a Financially Capable Generation", a se- ries of online sessions coordinated by JA Worldwide and HSBC, for which 100 Maltese young people aged between 12 and 16 attended. Additionally, students supported a dig- ital documentation project being under- taken by Fondazzjoni Patrimonju Malti and "Treasures by Inspire", the shop run by the Inspire Foundation which sells items donated by the public. Volunteers who attended Skolasajf also assisted in the delivery of various HSBC Malta Foundation supported pro- grammes. ese varied from educational initiatives such as Maths lessons organ- ised by ĠEMMA, to life skills provided by the Malta Girl Guides and the Prince's Trust International Achieve Programme, Street Sports by the organisation MOVE. Other social programmes were created by Missio and CORE. Glenn Bugeja, Corporate Sustainabil- ity Manager at HSBC Malta, said: "At a time when many of us have been living an unusual COVID-19 reality, the HSBC Malta Foundation has continued to pro- vide support to numerous organisations. is summer we have once again given students and our staff members the op- portunity to volunteer on various pro- jects, including the opportunity to team up with the Foundation for Educational Services to provide Skolasajf students with an introduction to various life skills. is initiative gives them the opportu- nity to engage with the community in a positive and constructive manner. e MCAST students will also obtain a cer- tificate for the hours they contributed. e HSBC Malta Foundation thanks these MCAST students for their collabo- ration in such an important cause." An active summer for The HSBC Malta Foundation

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