Issue link: https://maltatoday.uberflip.com/i/722943
maltatoday, SUNDAY, 4 SEPTEMBER 2016 9 News Terms and conditions apply. All interests are gross of tax. Issued by APS Bank Limited, a credit institution licensed by the Malta Financial Services Authority. Nothing provided in this document constitutes investment, tax or any other form of professional advice. You should consult your independent legal, financial or other advisors to ensure that any decision you make is suitable for you with regards to your specific circumstances and financial situation. The performance of the underlying index is not guaranteed, values may rise or fall and past performance is not a guarantee to future performance. The Bank is subject to the Depositor Compensation Scheme in terms of Legal Notice 383 of 2015 as subsequently amended. EURO STOXX 50® is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland and/or its licensors ("Licensors"), which is used under license. The Account is in no way sponsored, endorsed, sold or promoted by STOXX and its Licensors and neither of the Licensors shall have any liability with respect thereto. STABLE RETURNS, NO CAPITAL RISK. facebook.com/apsbank values you can bank on 2122 6644 apsbank.com.mt KAPITAL PLUS GUARANTEED CAPITAL AND ANNUALISED INCOME AUGUST 2016 MINIMUM DEPOSIT €5,000 LIMITED OFFER 18412 APS Kaptital Plus Advert.indd 3 19/08/2016 11:20 AM Developers eye more development in St Julian's Moody's forecasts robust economic growth Six-storey block proposed instead of old guest house • New developments in Sacred Heart convent area A six-storey block in Sacred Heart Street instead of Casa Pinto guest house Six-storey block instead of 2-storey building in Triq is-Sorijiet hill JAMES DEBONO THE quaint residential area in the vicinity of the Sacred Heart con- vent in St Julian's is attracting a particular interest from develop- ers who are looking to develop in- ternal gardens and raise building heights. An application has been present- ed proposing the demolition of the two-storey Casa Pinto guesthouse in Sacred Heart Street, and its re- placement with a six-storey block with penthouse. The development, proposed by Alan Bonnici of AXT Properties, encroaches on the gardens of the former guest house and will be ac- cessed from Birkirkara road. The proposal retains the exist- ing façade of the guest house and foresees the construction of apart- ments over six floors and a pent- house which will be visible from Birkirkara Road. The modern part of the build- ing will include white aluminum glazed apertures and steel col- umns with steel mesh screening. The development will involve the felling of trees and the removal of rubble walls. The Bilom Group has recently applied to restore and convert the scheduled building The Cloisters on Triq Birkirkara, into a boutique hotel and restaurant. The building presently enjoys grade 2 protection, which pre- cludes demolition. The project would see the ad- dition of an extra storey to the front of the townhouse and build a six-storey apartment block at the back of the house. Plans foresee apartment blocks encroaching on the gardens behind the protected building. The terraced develop- ment, which reaches up to six sto- reys, will front Triq Bonaventura and Triq is-Sorijiet, near the Con- vent of the Sacred Heart. Further uphill on Triq is-Sorijiet in the vicinity of the back garden of The Cloisters, another project has been proposed by Core Properties Limited, envisioning the complete demolition and re-construction of an existing two-storey build- ing over 382 square metres and its substitution with a five-storey block with a receded sixth floor. TIM DIACONO CREDIT rating agency Moody's has delivered a clean bill of health to the Maltese economy, re-affirm- ing the country's 'A3' rating and forecasting continued economic growth and further declines in the budget deficit. In its latest statement, Moody's said that the economy should continue to grow at a robust rate of around 3.7% over the next two years, a decline from the 6.4% growth registered in 2015. The government toasted this lat- est report, arguing that interna- tional experts have shown faith in its plans to reduce the debt ratio, introduce structural reforms, and reduce the country's reliance on oil as an energy source. "This trust is expected to attract more interest among foreign inves- tors that will lead to further eco- nomic growth," it said in a state- ment. In its report, Moody's said that Malta's economy is competitive and that it exhibits elevated wealth levels, despite its relatively narrow base. "Recent economic reforms have sought to counter structural chal- lenges, enhancing the economy's resilience to future shocks," Moody's said. "Furthermore, progress has been made in reducing Malta's reliance on oil imports as a primary energy source, notably through the recent electricity connection with Italy, which is already playing an impor- tant role in energy supply, support- ed by additional large-scale energy investments." However, it said that its assess- ment of Malta's economic strength has been constrained by its labour market rate, which remains below the EU average, barriers to invest- ment as flagged by its low ranking on the World Bank's Ease of Do- ing Business report, and the small size of the domestic market with a population of just over 400,000. In addition, risks to sustaining cost competitiveness are rising, reflecting the challenges to labour productivity. Moody's also predicted that Mal- ta's government debt to GDP ratio will decline to just below 60% in 2017, after averaging 68% between 2010 and 2014 and dropping to 63.7% in 2015. "The decline reflected faster- than-expected nominal GDP growth and fiscal consolidation efforts, that were supported by the strengthening of Malta's fiscal framework, including the intro- duction of the Fiscal Responsibil- ity Act and the operationalization of the independent Fiscal Advisory Council in 2015." The credit rating agency noted that Malta's track record of sup- port to public corporations has fis- cal implications and that the debt guaranteed by Malta's government remains significant at €1.4 billion or around 16% of 2015 GDP. Moody's also noted that the re- structuring of Air Malta, which has resulted in previous capital injec- tions by the government, has yet to place the airline on a secure finan- cial footing.