Issue link: https://maltatoday.uberflip.com/i/1492168
3 NEWS 9.2.2023 BOV financing a more climate neutral business model Malta needs 'exit strategy from the fixed-energy-price policy', IMF says FROM PAGE 1 "Uncertainty is exceptionally high, and risks are tilted to the downside, includ- ing a deeper-than-expected recession in Europe, a possible de-anchoring of infla- tion expectations, and the realization of money laundering and terrorist financ- ing risks. On the upside, lower-than-ex- pected commodity prices would lead to stronger growth than forecast." e IMF's executive board said Malta's economic recovery from the pandemic had been "remarkable", but the indi- rect impact of Russia's war in Ukraine weighs on the outlook, and said Malta has to plan ahead due to its energy sub- sidies. "e authorities should prepare an exit strategy from the fixed-energy-price policy while protecting vulnerable groups. e exit strategy should aim to contain fiscal costs and introduce mar- ket price mechanisms to enhance incen- tives for energy conservation and help accelerate the green transition while protecting vulnerable groups. e au- thorities should explore reform options with the aim of gradually rolling them out ahead of winter 2023/24. Ultimate- ly, accelerating the green transition is the best way to strengthen Malta's resil- ience to an energy shock," the IMF said. e fiscally-conservative IMF also said that while public debt for Malta will re- main below the 60% of GDP threshold, this could grow if economic growth decelerates and also due to global chal- lenges to Malta's tax regime for expatri- ate multinationals. "e authorities need to reform the taxation of multinational firms and consider broader reforms to the tax sys- tem and to revenue administration with the aim of simplifying and improving the efficiency of the tax system and re- ducing administration and compliance costs while protecting revenues." e IMF said the Maltese government should keep rationlising public spend- ing, and instead focus more on green investment, as well as prepare "pen- sion-related reforms" by encouraging more citizens to take up voluntary oc- cupational pensions and personal pen- sions. The IMF wants the Maltese government should prepare "pension-related reforms" by encouraging more citizens to take up voluntary occupational pensions and personal pensions BANK of Valletta is actively finding ways to decarbonise its business mod- el, Mark Scicluna Bartoli, Head Product Management and Development at BOV, said. "Besides paying close attention to its own operations, the bank is extending its decarbonisation strategy to our fi- nancing activities and engagement with customers" He was speaking during the presenta- tion of findings of the BOV-Deloitte, MHRA Hotel Performance Survey. is long-standing collaboration between Bank of Valletta, the Malta Hotels and Restaurants Association and Deloitte on the performance of the hospitality industry highlighted a positive recovery of the industry after a very challenging start in 2022. "Financing a more climate neutral business model goes beyond install- ing PV panels," Scicluna Bartoli said. "While such initiatives help in steering us away from a carbon intensive energy supply, climate neutral business mod- els entail reducing our energy footprint with a positive return on the investment in the long term." "BOV's Energy Financing products offer an affordable, banking solution aimed at assisting business and person- al customers invest in energy efficient solutions. e products benefit from a guarantee and interest rate subsidy funded by the European Regional De- velopment Fund. e interest rate sub- sidy covers the interest element in full for the first 10 years of the loan. "While we at Bank of Valletta, have stepped up our efforts, in line with our climate commitments, to reduce our carbon footprint, we are also focusing on how our business and personal fi- nancing solutions will embrace these principles going forward to make a pos- itive impact on our environment." Loan specialists deployed at BOV branches will be guiding customers in choosing the energy loan that is best for them or their business. Customers are urged to send an email to on business- development@bov.com or call us on +356 2275 1122. Mark Scicluna Bartoli (centre) speaking at the presentation of findings of the BOV- Deloitte, MHRA Hotel Performance Survey