Issue link: https://maltatoday.uberflip.com/i/1386209
5 maltatoday | WEDNESDAY • 23 JUNE 2021 NEWS MALTA GOVERNMENT STOCK FOR SAFE INVESTMENT AND LIQUIDITY WITH INTEREST PAID UP TO THE DAY OF RE-SALE OF STOCK ◆ SECURITY ◆ CONTINUOUS LIQUIDITY ◆ INTEREST EVERY SIX MONTHS ◆ (The value of the investment may go up or down during the tenor of the Stock.) Treasury Department, Development House, Level 2-3, St. Anne Street- Floriana, Malta Secure Investment Issue of €50,000,000 Fixed Rate Malta Government Stocks (subject to the over-allotment option up to a maximum of €30,000,000) MALTA GOVERNMENT STOCKS STOCK TAL-GVERN __________ (i) 0.25% Malta Government Stock (Third Issue) Fungibility Issue maturing in 2026 at €101.25 with a YTM of 0.018% (which corresponds to an annualised yield of 0.018%), and Fixed Rate Malta Government Stocks Applications from members of the public for an amount up to a maximum of €100,000 per person in any or in every of the two stocks on offer open on Wednesday 23 rd June 2021 at 8.30 a.m. and close at 2.30 p.m. on Friday 25 th June 2021; and Applications from wholesale investors in the form of sealed bids (auction) open on Monday 28 th June 2021 at 8:30 a.m. and close at 12.00 (noon) (CET) on Wednesday 30 th June 2021, or earlier at the discretion of the Accountant General. The application forms may be obtained from, and lodged at, all Members of the Malta Stock Exchange and other authorized Investment Service Providers on the indicated dates. The Offering Circular and the application forms may also be downloaded from the Treasury's website at www.treasury.gov.mt. Bids on the prescribed forms are to be transmitted by e-mail at the e-mail addresses indicated on the application forms. The Accountant General announces that the price for each Fixed Rate Malta Government Stock offered for subscription by members of the public has been established as follows: (ii) 1.80% Malta Government Stock (First Issue) maturing in 2051 at €100.00 with a YTM of 1.800% (which corresponds to an annualised yield of 1.808%), or (iii) Any combination of the above two stocks which in the aggregate shall be € 50,000,000 A new mandate But beyond this Abela will have to give serious consideration to the fact that he may require a new and clear mandate to straighten things out. A debacle at FATF can provide the right pretext for an early general election in which Abela will want to show he is his own man. He will want to show that he is able to take the Labour dream forward without the excesses and illegalities that were allowed to permeate under his predecessor. The problem with such a consideration is timing. The earliest an election can be held, given the timeframes laid out by the Constitution and the practice to hold elections on a Sat- urday, is 31 July. This would mean an election campaign in the summer when people are more intent on relaxing, holidaying and hopefully en- joying the newfound freedom after COVID. Abela will not want to disrupt the sum- mer and the feel-good factor it may bring with it if the COVID pandemic remains under control. The next plausible option will be October, giving Abela time to take stock of the FATF decision and map out a way forward to get off the grey list as quickly as possible. A budget complication The only complication will be the timing of the budget. An October election can disrupt the Finance Minister's plans for Budget 2022. It is unlikely that Abela will want to forfeit the budget for an election. The last time an October election was held was in 1996, when Eddie Fenech Ad- ami called a snap election because the country's finances had taken a turn for the worse and the budget would have exposed the problematic reality. Abela would want to avoid the odious comparisons with 1996, when his own fa- ther was deputy leader of the Labour Party that was elected to power to find a gaping hole in the country's finances. This means that Abela's best option for an election this year will necessitate the budget to be held in September. But any such move will be a clear signal to his political rivals of his intention. The next and possibly most plausible op- tion is March 2022. This date will give the Prime Minister the chance to present a budget, lay out his plan to get off the grey list, assert himself more and have a clear view of how the COVID pandemic will transform. Abela will have to endure nine months of criticism and pressure over the FATF de- cision to grey list the country. He will also have to deal with the repercussions on the financial services industry. But the length of time can also give Abela an opportunity to continue straightening things out and distinguish himself and his government from its predecessor. 'I told you so' In all this, the Labour leader does have the advantage of survey numbers that continue to give him strong support and an Opposi- tion that remains in tatters, unable to rally enthusiasm about anything. How long this advantage will last depends in part on the Nationalist Party's ability to change, rope in new faces and present itself as an alternative government. The pros- pects so far, do not appear too good. However, the PN will have to choose its words carefully, if Malta does make it to the grey list. Adopting an 'I told you so' attitude with- out a modicum of criticism towards the in- ternational big brother politics at play will only reinforce Labour's message that the PN is only interested in harming Malta's reputation abroad to gain power. All the math and political analysis to choose the best timing for an election will only kick in if FATF chooses the unpalata- ble option to grey list Malta. But with the election being the Prime Minister's sole prerogative, any date from July 2021 to September 2022 could be an option. Abela may yet decide to sit back and take Labour to its full term despite the looming prospect of grey clouds on the horizon. And if Malta avoids the grey list this after- noon, it will be a different story altogether for Abela and his government. But that will be something to write about on another oc- casion.