54 tal-1993

L.N. 54 01 1993

BANKING ACT

lCap. 2U)

InknstRatn 011 Loans and Ad yancn Order , 19U

IN e~e rcise of the powers conferred hy sect ion 22 of tile Banking

ACI. the Minister of Finance, afler conslIll8tion with the Central Bank

of Malta, has made the following order

I , Thi$ Order may be cited as the Interest Rates on tAlans and

Adv_Order, 1993,

L-oghla rata la' mgllaJ li l·ballC k kummertjali jew

islituujonij iet finan~arji jistgbu jimponu fuq self u avvaru:i denominali

rliri Maltin li1l·kalego riji indikat; hawn lahl gb andha Ikun kif gej

l..opIo_"..St/f.,..-aioUoH

0".06""."" ... f '''·_OIIW

1. Se lf inter·bankarju ghad·

Rata ta ' $ kont (Nota)

Djar ............ ...... .... ..

+ 1% fis-sena

If. Self k l'lor gbld·Djar gIlal

Iok rejn wiel'lcd joqghod

hu !ite". sa l-e_ el

LmI5.00J ................ .

Rata ta' Skont (Nota)

+ 1.5% fis-5Cna

Ill .

Self lil Sctt uri Prijorilarji

li jillomprerKIu Bicdja.

Sajd. Manifattul1I. TlSWija

u Bini la ' Bastimenli .

Lukandi u 51abbilimenli

luristia ohra liCcnzjali

biu joffru akkomodaz·

zjoni u Organ~ni-

Rata ta'Skont(Nota)

jicl Parulalal i .......... ..

+ 3% fiS-ISCna .

IV .

Sclfiel'lor ................. .

Rala ta'Skool (NOla)

+ 3% r"-5erta

NOIIl: Ir-Rata Minima la' Skonl lfissc:r ir· Rala la' Skonl lal-

Bank Centrali skond I·artikolu l7 ta · I·A II dwar il·Bank Cenl1111i la'

Malta kif 51abbilila u maghmula pubblika mill-Bank minn Zmien

glial tmien

lida fil-kat laI-Kalegorija U I (Selluri Prijorilarji),I-ogb1a rala

kif murija hawn fuq gIIandh. ligi mTUlqq!l bi

(a) 2% tls-$ena jetk il-garanzija li Ikopri I-ammonl shilIla5-

selftkun n-gbamla la' .. ahdajew lahl; l. m;nn dawn li gejjin

(i) Garanziji 111,C~m ta ' Mallajew garanziji bbakkjali

miU-Gvem ta ' Malta, jew itlri la' obbliguJ;mpenn mal'lruga

miU-Gvem la ' Malla;

Garan~ji la' bane k lal-pri ma kl ass;;

(ii)

(ni)

AIlS konlanl;, depotiti bankarj i bil-Ierminu jew ta'

l;fd;l;

(iv) Kull xona ohra ta ' garantija li I-bank lijsellefjista',

fid-diskrenjoni lieghu, jikkunsidra li Ikun ekwivalenli glial

(i), (il) u (ill) ta' hawn fuq ;

(b) 1% Iis-seTUl jekk min jissellef ikun kumpannija ta'

resp<lllSllbbiJliI limilata Ii tipprovdi garanzija li Ikopri l-ammonl

shih ta5-ielf n-glIamla ta' xi Idassi jew il-klassijiel t ollha spetifikali

lahl (i) u (iv) la' (a) ta' hawn fuq iida li I- t apilll imh.llas lagl'lha_

.. ara I; minnu jitnaqqas kul! telf akkum ulal, ikun inqll$ min n 20%

laI-faCllilajiel la- kredilu lotali mal-bank u banet ohra inklldi 1-

faalitajiel miiluba;

Ltda wkoll illi, ukoll fiJ -kat ta] -Kategorij a III (Setturi

Prijoritarji), mela min jissellcf ikun kumpannija ta ' responsabbihl

limi lala li tipprovdi garanzija Ii ma tkunx dik spe~fikala rea) lal-proviso

la' qabel dan , 1-ogl'IIa rata lista' tig; mnaqqsa b'dak I-ammonlli jkun fid-

diskrczzjoni la ' min ise ller, skond il-p,opo!"/ljon lal-kapital imhallu u

fondi oh'l ta' ]-aujonisli mqabbla mal-fati lilajiel 101lli li I-bank jcw

isli luzzjoni finanzjarja jkunu Qed jagtuu kif ukoll skond il-garantija,

jckk ikun hemm , li min jissellef ikun qed jipprovdi ;

IMa wkoll iIli , fil- kaf la' self rkonnessjoni ma ' tvilupp la-

proprjetl inlita glial bejgh jew ghal skopijiel spe kulattivi u fiJ-kat la' se lf

latu iI -Katcgoriji If u IV mela jkun mehlieg il-pellTll'$S tal -Konlroll fuq

il-Kambj u, ir-rala rcla niva la' l-ogllla mghiU lisl" Ikun dik lalll ;1-

Kalegorija IV b'tieda ta ' OS)"" f.s-sena _

J _ Ir· rali la' mgl'lllll applikabbli skond iI-paragrafu (2) la' dan I-

Ordni glIandhom ji])de,.. ischhu kif gej

(i) fuq self ikkunl rau al qabel id-data la ' dan I-Ordni. il-pa n ;

u I-kundiujonijicl applilr.abbli ghandhom jibqgl'll,l kif

originarjamenl approYati minn min iscUd iZda glland hom ji*u

.ri~duti skond dan I-Ordni fid-data anniversarja laS-ielf Ii lmi.u

(il) ruq avvanzi u fat'ililajiet la ' ktedilu ohra (esklut se lf)

ikkunlra nali qabel id-dala ta- dan [-Ordni , il-pa lli u I-

kundi:ajonijiel appli kabbli ghandhom jibqghu kif originarjame nt

approval; minn min iselle f iida ghandhomjigu ri ... "dut; skond dan I·

Ordo; lid-data tat-tigdid I; tmiss;

(iil) fuq self u avvanzi godda approval; minn min iselld f:t Jew

wara d-data la' <Ian I·Ordnl, minnufih fid-dala ta' l-approvazzjoni.

--

The ma~imum rate of interest that commercial ~nks or

financial institlltlons may charge on loans and advances denominated in

Mallese ~ri to the categories indicated herellnder &hall be as follows

lntcr·bank lending fOf

I.

Homing " ... ,.,.""",,,,

Di$OOUn t Rate(Note)

+1% p.a,

11 , Othu lending for HOIls-

ing for own residential

IInil up 10 the first

DillOOllnt Rale (NOIe)

LmlS.tnl """""""",

+ 1.5% p,a.

Ill ,

Lc:nding 10 Priority S«-

10rs comprising Agri\!lJl·

lure, Fisheries, Manll-

factu ring, Shiprepair and

Shipbuilding, HOIels and

other lourist establish-

men ts I~~ to offer

acrommodation and Pa-

Discount Rate(Note)

rastatalOrganisations

+ 3%p,a,

Discollnt Rate (Nmc)

IV, Other lending """"""

... 3% p,a,

Norl,' Disoount Rale means Ihe Central Bank Minimum

Discounl Rate in terms of section 17 of the Central Ban k of Malta

Act as dete rmined and made publk by Ihe Bank from time 10 time

Provided that in the case of Categ<.>ry III ( m orilY Sectors). the

maximum rale as shown above shall be reduced by

(a) 2% per annum if the s.ecuritycovering the full amount of

lending is in the form of one or 11 mi.\ of the following

(i) Go~ernment of Malla guarante« or Governme nt

of Malta backed guaranleeS, or (iQve rn ment of Malta le tters

of undertaking/commitment

First class ban k guarantee~;

(i i)

(iii) Cash, time or sa~ings bank deposits

(i~)

An~' othe r type of security which the lending ban k

may. at its discretion. consider to ~ equivalent to (i). (ii) and

(iii) abo~e;

(b) 1% per annum if the borrower is a li mited liabili ty

company, providing securit y covering the full amount of tile

lending in the form of any oneor all of the specifted types under (i)

10 (i~) of (a) above bul its paid up capillI neu ed of any accum ulated

losses being less th an 20% of the aggregate credit facili tic$with lhe

ban"

bank and other

including the requested f.<:ilitic$

Provided furthu that. also in the ease of Catc8Of}' III (Priority

5«'Ion), when the borrower is a limited liabili ty company providing

security other than that specified in (a) of the forcgoing prOYiso, the

maxi mum no te may ~ reduced by such an amount 1I the lender's

discretion dcpendingoo the proportion of the paid up capital andOlher

shareholders' funds in relation to the toW facilitie$the bank or financial

inst itution is granting as well as on the !lCCUrity, if any . which the

bo~r is providing;

Provided also Ihat. in lhe c;ase of lending in connection with

prope rty de~e1opment for resale or spc:cuJali~e purposes and in the ease

of lending under Calegori« 11 and IV whcn Exchange Control

pe nniWnn is rcquired. the re1ali~e maximum interest rate may be Iha t

under OI tegory IV plus 0.5% per annum .

J. The rates of interest applicahle under paragraph 2 of Ihis O rder

sh all become effective as follow-s

(i ) o n loanscontracled for before the dateofthis Order. th e

terms and conditions applicable shall remain as originally

sanctinned by the lende r but shall be revised in accordance with this

Order on too next anni~ersary date of the loan

(ii) on ad~ances and other credit facilities (excluding loans)

contracted for before the dat~ of this Order. the terms and

conditions applicable shalll'<'main as origi nally sanctioned by the

lender but sball ~ I'<'vised in accordance with this Order on the

fle~t renewal date

(iii) on new loans and ad~llllces :;anc:tioned by the lender on

or after the date of this Order. immedia tely on date of sanction.

"IlK: max imum inte' 0:51 rale tbat commercial bankso. finaociBI

imtilutionJ ma y char~ on loons and advances denomi nated in any

foreign currency in respect of any category of lending sball not exceed

by mOre than .5% per an num Ihe prevailing London inter_bank offered

rate (LlBOR) applicahle at tb e lime of sanction of Ihe loan or advance

and/or at sucb other timels as may be agreed between the lender and the

borrower.

s. The ratesof inlcreSt . ppl k able under paragraphs 2 and 4 of this

Order shall be inclusive of any management and/or Other admin;51ralion

fee, commission and any other cost howsoever described charged to I

CtWorne r on J ",gular basi).

,. "IlK: Central Bank of Malta is hereby empowered to issue such

directives IlI>d ,uidclines as il may deem appropriate for canying into

effect the provisions of Ihis Order.

Wilhout prejudice to any thin, lawfully done or omitted 10 be

done tbereundt:r, the Interest Rales on Loans and Advances O rder,

1987 is hereby ",pealed.