25 - 31 May 2000

Government to issue privatisation bonds

by Franco Aloisio

The government will be issuing special privatisation bonds linked to the privatisation of public entities and corporations in the coming months, Finance Minister John Dalli said

yesterday. Speaking during a seminar on privatisation organised by the GWU, Minister Dalli said these bonds will be preferential, in that whoever subscribes to these bonds will participate in the government's upcoming privatisation programme which will span a number of years.

This would give a second opportunity to investors interested in investing in privatisation shares. In fact, a few months ago the Malta Privatisation and Equity Fund was launched by Global Funds SICAV plc. Mr Dalli yesterday said the government will be adopting different models in the privatisation of its organisations and entities. The privatisation of each entity or corporation will be dealt with on its own merits, he added.

"The government will stop being the main protagonist in various economic sectors, but will maintain its regulatory role," said Mr Dalli. He added he disagreed with the partial privatisation model proposed by the GWU which consisted of a 60-40 per cent ratio in which the government maintains a 60 per cent majority shareholding.

Minister Dalli said in today's world, privatisation is no longer tied to any ideology, and the sale of public entities is even being implemented in Socialist China.