MT
Inkrat Rates 011 lANlns and Advances OnIer,I993
Table of Provisions (6)
Statutory Text (6 Articles)
I..N. 188 of 1993
BANKING ACT
(C AP. 21 5)
Inkrat Rates 011 lANlns and Advances OnIer,I993
IN exercise of the poweR conferred by section 22 of the Banking
Act, the Mi nisteT of Finance, .fteT consultation with the Cenll1ll
Bank of Maha. has made the following order
I. (I) This order may be cited as the Interest Rates on l.Qans
""=---",. and Advances Order. 1993.
_-
(2) This order shall oomc in to fcm:e on the 151 January
,99<.
The: maximum rate of interest that commercial banking Or
financial ilL~tilutions may charge on loans and advances denominated
in Maltese liri shall be 3% above the Central Bank of Malta 111
minimum disoount rate, except Ihat in !be case: of loan$ and adYlnc:cll
for
(a) onc resil!ential unit for own use. up to !be first
LmI S,OOO, when the muimum rate of interesl shan be 1.5%
above the lo8id minim um discount I1Ite, and
property development for r<:Silk or for spl'{ulativr
(b)
purposes Ind for lending to non-residenl5, when in all such cases
the maximum rate o f in terest shall be 3.5% above the se t
minimum discount rate.
3_ The muimum interest rate tbat commercial banks Of" o the r
financial institutions may charge on Ioan$ and advances denominated
in any foreign cum:ncy in respect of any category of lending !hall not
exceed by more than 5% per an num the prevailing London inter-
Bank Offued Rllte (LlB O R) applicable al the lime of sanctioning
Ihe loan or advance and/or al such other times as may be agreed
between the lender and the borTOwcr.
L-og.hla rala la' mghu li banck kummercjali jc'" isliluzzjonijict
finanzjarji jiSlghu jimponu fuq self u avvanzi denominali fxi fhu
bammin dwar kull kalegorija la' self ma ghandhiex lettedi b'aklar minn
5'Yo fis-sena lir·rala 11' mgha>: inler-bankarjaoffnlla fLondn (L1BO R)
prevalent; 11 applikabbli rIi.-!mien la' l·approva.u;joni tu-5C]f jew avvaru
uljew rdak it·~micnl!minijiet OnTO I( ji5lgtlu jiA:u miflichma bcjn min
iscllefu min jissellef.
•. Ir·nll la ' mghu applikabbli skond l-ani kli 2 u31a' dan I·Qrdni
gllandbom jinkludu kllll hlas la' managtmml uljew hla! amministralliv
idIOt , kummissjoni u kIIU spejjd oh .. , ikllnu kif ikunu dcskrilti , li jitu
imposti fuq il-klijcnt fuq baii regolari .
S. !I-Bank Central i la' Malt a huwa b'dan moghli S-SClghB li
johrog dawk id·diretlivi u d-ditezzjonijiel li !tuwa jista' tqis li jkunu
xicrqa sabiex jinghala effett lid-dispotizzjonijict la' dan I·Ordni.
The rates of interest applicable under articles 2 and 3 of t his
Order shall be inclusive of any management and/Of" o the r
administration fee, commission and any other COSI, how. o~wr
described. charged to a custome r on a regu lar b;uis.
The: Central Bank of Malta is hereby empowered to issu~
such directives IInd guidelines as it may deem appropr bte to
t arrying into effec:t the pro~is ions of this Order.
Without prejudice 10 anything lawfully done, or o mitted to
be done . thereunder , the Interest Rates on Loans IInd Advances
O rder, 1993 published by Legal Notic:c 54 of 1993 is hereby r~pe31~d.
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