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Further liberalisation of exchange control announced
by Franco Aloisio
Finance Minister John Dalli announced measures aimed at further
liberalising exchange control. He said these measures, which
will come into effect on 1 January 2001, will relax the quantitative
limits on the remaining current payments and capital transactions
subject to control.
The main points of the measures which were introduced are the
following:
• The limit for travel purposes has been increased from
the present level of Lm5,000 per person per trip, to Lm10,000.
• The limit for payments in connection with cash gifts
was raised from Lm5,000 per adult person each year to Lm10,000.
• The purchases of foreign currency for export by residents
who intend travelling overseas to make merchandise payments
went up from the present limit of Lm20,000 to Lm50,000.
The importation into Malta by any resident/non-resident of any
notes and coins, which are or have been legal tender in Malta,
has been increased from the present level of Lm50 to Lm1,000.
The exportation from Malta from any resident/non-resident of
any notes and coins, which are or have been legal tender in
Malta, is being increased from the present level of Lm25 to
Lm1,000.
The amount that residents are permitted to invest in real estate
overseas is being raised from the present level of Lm50,000
per year to Lm150,000. The foreign portfolio investment allowance
for residents is raised from the present level of Lm15,000 per
year to Lm30,000.
Fund investment schemes (SICAVs) which collect funds in Maltese
liri from resident with the specific aim of investing such funds
in Maltese lira denominated securities on the local market are
permitted to invest up to a maximum of five per cent of these
funds in foreign assets.
Residents may retain up to Lm10,000 foreign currency instead
of the current limit of Lm2,500. The amount that a resident
person may maintain in a foreign currency current (demand) account
with local credit institutions is raised to Lm10,000.
Bodies corporate and local retail outlets are permitted to maintain
with local banks demand, savings and time deposit accounts in
foreign currency. The aggregate amount that may be placed in
such accounts is being extended from six months to one year
but should not exceed Lm10,000. These accounts may only be credited
with foreign currency earnings generated through their business
activities. Minister Dalli said lending extended by residents
to non-residents has been liberalised completely subject to
the condition that such lending is for maturity periods of over
one year. Banks can now make loans to foreigners on economic
activities in Malta even on Capital transactions in the local
market as long as this is for more than one year.
Borrowing by residents from overseas and the granting of guarantees
by non resident in favour or resident has also been liberalised.
Furthermore, all limits on the amount of transfer of assets
by residents in the event of emigration, have been lifted.
The following transactions have been completely liberalised:
• All restrictions on payments by residents in respect
of endowments to bona fide foreign institutions (such as educational,
charitable and cultural) have been removed.
• All transfers by resident persons in respect of dowry
payments.
• All restrictions on payments in connection with the settlement
of debts by immigrants in their previous country of residence
are removed.
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