ACT No. Xl of 1988 AN ACT f llTther /0 amMd the Cl'mral Bank of Malta Act, 1967 BE IT ENACTED by the President, by and with the advice and consent of tile House of Representatives, in this present Parli~ment assembled . and by the authority of the same, as foUoW);:- (asfouow)

[ assent.

(L.S.)

PA U L X U ERE 6

Acting President

5th Apri l, 1988

ACT No. Xl of 1988

AN ACT f llTther /0 amMd the Cl'mral Bank of Malta Act, 1967

BE IT ENACTED by the President, by and with the advice and

consent of tile House of Representatives, in this present Parli~ment

assembled . and by the authority of the same, as foUoW);:-

t. (\) This Act may be cited as the Central Bank of Malta

( Amendment) Act, 1988, a nd shall be read and const rued as onc with

the Cent ral Bank of Malta Act, 1967, hereinafter referred to as "the

principal Act".

(2) The provisions of this Act , other than thi s section and

section 8. shall come in to force on sllch date as the Mi nister may by

notice in the Gazette appoint, and different dates may be so appointed

for differe nt provisions and different purposes of the Aet.

(3) Section 8 of this Aet shall be deemed to have come ioto

force on 12 May, 1987.

In section 2 of the principa l Act the definition of "Posterity

Fund" shall be deleted.

3, In sectioo 5 of the principal Act for the words Mit may open

branches in M aJta~ there shall be substituted the words "it may open

branches in Malta and outside Malt a'".

Section 8 of the principal Act sha ll be amended as follows

(a) in subsection (1) thereof, for the words "on the

pensionable establishment of the Bank ~ th ere shall be substituted

the words "on the establ ishment of the Ban k ~;

(b) for subsection (4) thereof, there shall be substitu ted the

following

[n the cvcnl of the temporary absence of both the

"(4)

Governor and the Deputy Governor. the President act ing on

the advice o f the Prime Mi nister, shall designate a director

or a senior officia l of the Bank 10 act as Governor during

such pcrioo of absence."; and

(c) in subsection (5) thereof, for paragraph (c) of th e proviso

thereto there shaH be substituted the following

"(c) become chairman or direclorof any body corporate

in Malta specified under paragraph (h) of subsection (I) of

sect ion 15 of this Ac!.".

Section)5 of the principal Act shall be ame nded as follows: Amc:ndmem 0/

section ISofl"

(a ) in subsection (\ ) thereof, fo r paragraph (c) Ihere shall pri"';poIA<1.

be substituted the followi ng

"(c) purchase or sell -gold or silver coin or gold. silve r

or other precious metal in bullion or in any other form at th e

di scretion of the Bank , pro~ided that

the Ban k shall ende~our to hold as part of its

(i)

reser~e of ex ternal assets unde r section

19 of this Act a

minimum of 500,000 troy ounces gold bull ion or such

other minimum as the Min ister, on the recommendat ion

of the Board, may specify by notice in the Gazette, and

(ii) where th e Bank holds gold bull ion in excess of

the minim um asset down under item (i) of this paragraph,

it may deal in such excess as it may dee m appropri ate,

but if its holdings of gold bullion are lower than the said

minimum the Ba nk may sell only at a price which is not

less than the price at which it is valucd at the end of lhe

financia l yellr immediately preceding the sale and the

proceeds of such sale shall be placed in a separate account

which is to bc used solely for the purchase of gold

bullion."; and

(b)

subsections (2), (3) and (4) thereof shall be deleted.

Section 16 o f the principlll Act shall be amended as follows: Amend"",", 01

L-artikolu 15 ta' I-A t! prinCipali ghandu jig; emenda! kif gej

(a) fis·sobart ikolu (1) tieghu, minllok il-paragTlIfu (c)

ghandu ji<lhol d,,,, li gcj

"(i:) jixlri jew ihiegh m u~ iti tad -deheb jew tal -fidda jew

<le heb, fidda jew metall iehor preujlli: rrorma la' ingoni jew

f ku ll forma ohm fid-diskrezzjon i tal- Bank, izda

(i) I-Sank ghan<lu jaghmel hiltu li jkollu bha!" pa rt i

mir·rii.erva la' aniv eSlern ticghl1laht ]·artikolu 19 [a' dan

I-At! ammont minimu la ' 500,000 llq ija lroy fingot ti ta<l·

<leheb jew <lak ]·ammont minimu li I-Ministru, jis[a', fuq

rakkomandazzjon i tal-Bord. jiffis.~a b'awi:!: fiI-GazzcU",

,

(ii) me[a 1-8an k ifumrn ingotti [ad-dcheb in ecccs,

ta' I-ammont minimu stiplllat fi"sllhparagrafu (i) ta' <lan

il·paragrafu, jisla' jinnegozja dan l-eccess hekk kif jidhirlu

xieraq, iMa jckk ikollu inqas ingolti lad-dchcb mill-

minimu m>cmmi 1·8ank jisla' jbiegh biss bi preu li ma

jkunx inqas mill -prezz h bi h ikun Slma[ fi tmiem is-sena

finanzjarja li [igi minnufih qabcl il -bejgh 11 r- rikavat ta'

dak il·bejgh ghan<lu jitqicghed fakkont sepa ra[ li ghandu

jint uZa biss gha x-xiri [a' ,"goui tad-dcheh:": u

(b)

is-suharti kol i (2), (3) u (4) ghandhom )i[hassru.

L-arl ikolu 16 ta' l-AIt prinCipali ghandu jigi cmendHt kif gej

(a) fil ·pamgrafu (d) tieghu, minnok il -klicm " hlief ki f prov -

<l ut n-arlikolu 26 la' ,.!<tn I-All." ghand llOm jidhlu I-k!icm "hlid kif

provdut fil -pa rHgrafll (k) 1,1' da~ I-artikol u 11 fl-ar[ ikolu 26 ta' dan 1-

(h) fi l- p"ragrafu (c) tieghu, w"r;1 I-kliern "1'" dHTll-artikolu'"

ghandhorn ji-j;dic<lu I,kliem ·'jcw tlll-paragrafu (n) 1;is·,uh;ITtikolu

(3) ta ' I-ani kolu I')'": II

(c) wara ]-paragrafu (j) tiegl'lu, ghandu jitdied dan il-parag-

rafu gdid li gej

"(k) jikkoncedi lil jcw jippermetti li jibqa' pendent;

ghar-rigward ta' xi wiched mill-impjcgati tieghu avvanzi Ii ma

jkunux assikurati jew facilitajiet la' kreditu li ma jkunux as-

sikurati li 11:011 flim kien ik unu jcctedu I-q [icgh \,,' tnax -il xahar

ta' dawk I-impjcgati.".

",,,,ion t6 of ,he

(a) in paragraph (d) thereof. for the words "sa ve as p ro~ id e<J pnncip>1 Act.

in sec tion 26 of this Act," there shall be substituted the words

"save as provided in paragraph (1::) of this section and in section

26 of this Act," ;

(b) in paragraph (c) thereof. after the words "of this section"

th ere shall be added the words "o r of paragraph ( n) of subsection

(3) o f sect ion 19" ; and

(cl after paragraph Ul thereof. the re sh all be added the

following new paragraph

"(k) grant to or permit to be outstanding in respect of

any onc of its employees unsecured advances or unsecured

credit facilities which in the aggregate exceed twelve months

emoluments of such employees. ".

Sectioll 19 of the principal Act shall be amended as folloW);

(a) in subsection (1) thereof. for the words "established

Stock Exchange _" there shall be substituted the words "established

Stock Exchange alld immovable prope rly situated outs ide Malta. ";

(b) in subsection (3) thereof. after paragraph (m) there shall

be added the following new paragraph

·'(n ) immovable property situated outside Malta ,

consisting of <.-nmmercial or residemial premises or rights

thereon. for eventual lease or sale as the Board may deem

fit."; and

(c) immediately after subsection (5) thereof, there shall be

added the following new subsection

"(6) 'The total value of the assets held under the

provisions of paragnlph (n) of subsection (3) of this section

shall at no time exceed two and onc half per centum of the

10lal value of the ex ternal reserves of the Bank.".

Section 19A of the principal Act shall be deleted.

In subsectio n (4) of section 22 of the principal Act the words

~Iogclher with the accounlS of the Posterity Fund laid with them before

the House under subsection (6) of section 28A of this Act" shall be

deleted.

Section 23 oflhe pri ncipal Act shall be amcnded as follows

(a) in subsection (2) thereof, after Ihe word ~commodilies.··

there shall be added the words "immovable property situated

outside Malt a ,"; and

(b) for paragraphs (a) and (b) of subsection (4) thereof.

there shall be substiluted the following new paragraphs

"(a) with effect from the financial year 1985 up 10 and

induding the financial year 1987. as to such portion thereof.

being not less than five per cenlUm , as the Minister may

direct, to the Posteri ty Fund, and as to the halance of such

profits. to the Government ; and

(b) with effect from the financial year 1988. entirely to

the Government. ".

11 . (I) Subject 10 the following subsections of this sect ion,

section 28A of the principal Act shall be deleted.

(2) Notwithstanding the repeal of section 28A of the

principal Act. the Posterity Fund shall continue 10 exist but shall be

wound up with effccl from a dalc which shall nOl be later than the 30

J une_ 19AA. a nd which shall be specified by the Minister by notice in the

Gazelle.

(3) On the dale so specified by the Mini,tcr all asselS.

liahilities and the net profits oflhc Posterity Fund up to that date sh~\I be

transferred to Government and passed to the Cnn>ol ida ted Fund and all

rights and obliga tions oflhc Fund shan VCSt in the Government.

(4) Notwithstanding the provisions of any ot her law. the

management. control and administration of the Posterity Fund shall be

Llcemell to have vested in the Bank from 12 May. 1987 unt il the dalC

spc'cificd by the Mi nister as provided under subsection (2) of t his section

a nd an\'\ hing done by the Bank in the management. oontrol and

administration of that Fund as aforesaid during that -a id period shall be

deemed to have beeo done under the authoril)' of this section.

(5) Th e Bank shall be rcsponsible for winding up the Poster·

ity Fund and for drawing up audited accoums of that Fund for the year

closing: 00 31 December. 1987 ~nd for the period from 1 January. 1988 to

the date 'pccified bv the Minister uoder subseClio n (2) of th;, sectio n.

(6) The B~nk shall as won as mar be but not late r than six

months after the audi ted aecounts of the Posterity Fund have been

finalized as provided El nder subsection 5 of t his sectio n. transmit to the

Minister a copv of such audited ,Kcounts and the Minister shall cause

that copy to be bid before thc House of Represental ives and 10 be

published in th e Ga7.cUe

(I) Bla lisara tas-subartikol i li gejj ill ta' dan l-artikolu, .-

anikolu 28A la' I-All printipali gliandu jig; rcvokm.

(2) Millk ejja r-revoka la' l-a rlikolu 28A la'l-An principali,

it-Fond ghall-Posteritil. ghandu jibqa' jciis\i itda ghandu jigi xjol! minn

data li ma tkunx iklar lard mil-30 I~ Gu nju, ]988, u li [kun spetifikata

mill-M inislru b "avvii. fiI-GazzeI13.

Fid·d~la

(3)

li ligi hekk spetifika\a mill-Ministru 1-3t!iv

kollu. il-passiv kollu u l-profini nelt; tal-Fond ghall-Posterila sa dik id·

data ghandhom Jigu trasferi ti lill-Gvcrn u mghoddijin till-Fond

KOllsol ida\ u l-jcddijicl U l-obbligi kollha (HI-Fond ghandhomjigu vestil;

fiI·Gvern.

(4) M inkejj~ d -d ispoiitzjoniji el l ~' kullligi ohTa, il-tmexx ija,

komroll u amministrazzjoni tal-Fond ghall-Postcrita ghandhomjitqiesu

li gew vesliti fil-Bank mil-12 ta ' Mejju, 1987, sad-data spetifi kala mill-

Minislru kif provdm taht is-subartikolu (2) ta ' dan I·artikolu u kull ma

jkun saT mill·Bank fit·tmexxija, konlroll u amminislrazzjon i la' dak il-

Fond kifimsemmi qabcl matul dak il·perijodu msemmi ghandu jitqies li

jkun sar lahl I·awtorilll. la' dan I-arlikolu.

(5) II -Bank ghandu jkun rcsponsabbli ghax·~oljimcm tal-

Fond ghall-Poslerita u sabiex jifformula kontijiet verifikati ta' d .. k il-

Fond ghas-scna I; taghlaq fil-31 ta' Diecmbru, 1987 u ghall-pcrijodu

mill·1 la' Jan nar , 1988 sad-da la spetifikala mill-M inislru laht is·

subanikolu (2) ta ' dan I-artikolu.

(6) [l·Bank ghandu kemm jista' jkun malajr itda mhux iklar

tard minn sitt xhur wara li I-kontijict verifikati tal·Fond ghall·Postcritll.

jkunu tcw finalizzati kif provduI lahl is'subarlikolu (5) la' dan 1-

artikolu, jibghal lill-Minislru kopja 13' dawk il·komijiel verifikati u I·

Ministru ghandu jara li d,k il· kopja tilqieghcd q!lddiem il-Kamra tad-

Deputali u li titi pubblikata fil -Gazzelta,

For subsect ion (2) of sccti()n 40 of the principal At! t herc sha ll Amend"..", "r

I:>;: 'ubstituted the following

... ";,,,,-\0)<>1,""

-

[>I"llI<lpa t Act

"Cl NOles issued bv the Ihnk shall be in such denomina ·

li()ns. and of sllch fort"' and designs. as shal l be approwd by the

Mini ster on I he r~e1.>mm~ndati"'l of the Ban k

Provided that as from 1 April. 1988 the designs shall not

portray any person. whether as the main theme orothern'ise, who i.

alive at the tim e of the approval given br the Minister . ".

Sect ion -+ I of the principal Act ,hall be amended as follows

1 J,

Amend",.", "f

,ect",n ~t of11>o

ia ) for ,un..cdion ( ~l thereof there shall be sub,tituted the i"'II<;p.tA<1,

following

'"(1) Coins is~ued by the [lank shall be in such dcn()·

minations. nnd of such form' and dc'igns. as shall be approved

tw Ihe Mini'ler on the r<'commendation of the Bank

Provided IhJt as from I April. 19AA Ihe designs sh~1I

no t p"nr,)\' ''"Y ~rson _ whether <I" the mJin theme or other·

",i,e. who is alive m the time "f th<' apprO\'al given by the

~l ini~ter , "

(b) subsections (7) and (8) thereof ,hall Qe renumbered sub-

sections (8) and (9) respectively. and

(c) for subsection (6) thereof. th ere sha ll be substituted the

following new Sllbscclion

"(6) Notwithstanding the prov isions of subsection (4) of

this sect ion. the Bank shall h3"C power. on due notice being

given by the Minister in the G azette 10 call in any of the ooins

currently legal tender on payment of tile face value thereof and

any such coins shall. on the expiration of the perioo mentioned

in the notice. cease 10 be legal tende r bul. subject 10 the

provisions of subsections (5) and (9) of IlIis sect ion and until

the expiration of two years following the cnd of the period

aforcr.aid shall be redeemable by the Bank on demand .11 par

and without charge. " ;

(d) immediately after subsection (6) thereof there ~ha ll be

added the followi ng new subsection

"(7)

After Ihe e ~piralion of six mOll1hs following Ihe

end of the period mentioned in the notice calling in any coi ns

under subscelion (6) of Ihis section. any coins so called in buI

not presell1ed for redemption shall cease 10 be included in the

coin liabilities o f the Bank and -

(a) the value of sllch coins shJIl be added 10lhe

profits of the Bank for thc financial year during which the

said period of six months expires: and

(b) the redemption of anyroins thereafter shall be a

charge on the profil and loss account of the Bank for Ihe

year in which Ihey are redeemed ... .

Passed by the HouseofRepresentativesat Si tting No. 880fthe 30th March, 1988.

JIMMY F ARRUGlA

Sp~(Jka

I' . M USCAT TERRIBILE

ACling Clerk 10 tht HQuse 0/ R~p'~mlat;VQ_

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