Clayton Bartolo wants more oversight on bonds tied to public land given through concessions
Sharing his two cents on the local bond market, Clayton Bartolo warns of 'unnecessary risks' tied to bonds linked to projects on government land given through concession
Former tourism minister Clayton Bartolo has called on authorities to closely monitor the local bond market, especially bonds tied to concessions.
On Wednesday, Bartolo took to Facebook to address concerns about the bond market a few days after PL MP Edward Zammit Lewis voiced similar opinions on the matter.
Earlier this week, Zammit Lewis stated that government should not act as guarantor of private bonds after Prime Minister Robert Abela stated that he received a petition from 5,000 bond-holders who invested in MIDI’s Manoel Island project.
Sharing his two cents on the local bond market, Clayton Bartolo warned of “unnecessary risks” tied to bonds linked to projects on government land given through concession.
“If the concession has specific conditions or in some cases is subject to termination, this could directly affect the value and security of the bond.”
Here, he called on government to protect public land subject to concessions and to ensure that such land isn’t used in a “speculative or irresponsible manner…” Bartolo also called for a stable and transparent financial market where investors can trust that bonds are sustainable and are supported by grounded realities.
The independent MP stated that government should increase transparency about the conditions and limitations of new and existing land concessions and support oversight by the MFSA Listing Authority, especially for bonds linked to public land.
Bartolo urged government intervention to protect investors in cases where the sustainability of projects linked to bonds is questionable. “However, government must also respect its role in a financial market of Malta’s size and must never offer a bailout to anyone.”
