Numerous ‘important people’ interested in IIP scheme

There were several foreigners interested in the Individual Investor Programme, according to Former Central Bank of Malta Governor and economist Francis Vassallo.

Speaking on TVAM, Vassallo said his firm had numerous pending requests from individuals hailing from the Eastern bloc, Asia, Northern Europe and South Africa.

Refusing to divulge the numbers, Vassallo described the potential investors as "important people... including footballers".

He said that Malta's strong monetary structure and the strong financial situation was one of the island's attractions. "But this scheme led foreigners to believe that we might have an unstable economy. Such perception could negatively affect foreign investors," Vassallo said. "Indirectly the scheme affected Malta's economy."

Vassallo welcomed the agreement reached between Malta and the European Commission.

Asked whether these potential investors were reliable, Vassallo insisted they were even though he has not yet met them. He said the prospective applicants had first wanted to read the legal notice.

Following the agreement reached with the Commission, the legal notice regulating the IIP was vetted and approved by the EC's legal services, providing Malta with the first such investment programme to be sanctioned by the European Union.

Vassallo expressed his disagreement with a prerequisite which bound prospective applicants to purchase €150,000 in government bonds or shares. He said that, because bonds were government's debts, he was not in favour of this condition.