Issue link: https://maltatoday.uberflip.com/i/867386
maltatoday, WEDNESDAY, 30 AUGUST 2017 11 Business Today www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way Issue of the 62+ Malta Government Savings Bond As from Monday, individuals born in 1955 or before, can ap- ply to purchase bonds specifi - cally targeting the elderly. It is for this reason that the bond has been called "62+ Government Savings Bond". The bond is going to have an advantageous interest rate of 3% per annum, a rate yield that is much higher than what is currently being paid by similar 5-year fi xed term investments. When the 62+ Government Savings Bond was launched, Minister Scicluna mentioned that in the present scenario, whereby there was a sharp decline in additional income for the elderly as a result of the reduction in interest rates on fixed deposit accounts being offered by commercial banks, the government introduced a budget measure to issue a bond with a much better interest rate than what is available on the market, to enhance pensioners' income. In order for this type of bond to be issued with attractive rates specially addressed to the needs of the elderly, it was necessary to amend the Treasury of Malta Law Bills, as was done by Parliament this July. Eligible individuals can invest a minimum amount of €500 up to a maximum amount of €10,000 in this bond. The interest is payable semi-annually in arrears on 13 March and 13 September during the tenure of the bond (unless withdrawn before) in the bank account nominated by the holder. Resident individual holders can opt to receive the interest net of tax or gross and declare the investment income received in the income tax return. The 62+ Government Savings Bond has a five-year term and will be repaid at par on 13 September, 2022. The bond cannot be negotiated, assigned or transferred onto any other individual or legal person and cannot be pledged. There is no secondary trading market for the bond, which is a special issue and therefore there is no guarantee that another issue will be available when the bond is repaid. The bond cannot be held jointly with another individual. Moreover, curators appointed by court; an individual or a legal person, acting under a valid power of attorney, can purchase bonds on behalf and in the name of another eligible individual. In such cases, the bond shall be deemed to be held by the eligible individual on whose behalf it was purchased. Bondholders may withdraw the whole amount invested in the 62+ Government Savings Bond before maturity date of the bond subject to the payment of a penalty for early repayment equivalent to three (3) months gross interest on the sum withdrawn. By way of example, a bondholder who invested the maximum permissible amount of €10,000 who opts for early redemption of the bond will incur a penalty of €75. No penalty will be charged where the bond is repaid before maturity to the heirs of a deceased bondholder. In such a case, upon the notification of the death of a bondholder, the account is put on hold and the principal and accrued interest up to the last day, which immediately precedes the repayment date of the bond, is paid to the heirs through the transmission Causa Mortis procedure. The bond held by the deceased is not transferable onto heirs. The 62+ Malta Government Savings Bond can be purchased from all authorised financial institutions and investment services providers between Monday, 4 September 2017 and Wednesday, 6 September 2017. A list of all authorised financial intermediaries can be viewed on the Treasury's website at www.treasury.gov. mt. In the event that the original sum on issue is oversubscribed, the Accountant General reserves the right to exercise the overallotment option by issuing further bonds up to a maximum mentioned in the issue of the bond. In the case that notwithstanding the exercise of the overallotment option there remain applications which are unsatisfied, then the Treasury will scale down applications as deemed appropriate. Finance Minister Edward Scicluna