On 19 January, the Treasury of Malta announced that the issuance target of Malta Government Stocks for this year has been set not to exceed €500 million. Part of the proceeds will be used to redeem the following 3 MGS issues, totaling €208 million and maturing in 2009:
(i) €149.8 million – 5.9% MGS 2009 (III) – maturing on 27 March
(ii) €0.165 million – 7.0% MGS 2009 (I) – maturing on 3 July
(iii) €58.2 million – 5.9% MGS 2009 (II) – maturing on 1 September.
The balance of €292 million will be used to finance the Government’s 2009 borrowing requirements and effect changes in the Government’s debt portfolio including the conversion of €200 million of Treasury Bills into Stocks as announced in the 2009 Budget Speech.
The Treasury plans to spread its issuance programme over 5 to 6 issues during the period February to November 2009, approximately issuing one MGS every 2 months. The amount of every issue will depend on the conditions prevailing in the financial markets at the time. The maturity term of the 2009 issues will vary between the short, medium and long term. All relevant details will be published on the Government Gazette prior to the actual date of each issue.
Meanwhile, the Treasury also announced that auctions for Treasury Bills will continue to be held weekly (normally on Tuesday of the auction week) and will generally focus on the 91-day tenor. On a monthly basis the Treasury will publish a calendar showing the tenor of the individual weekly issues in the Government Gazette.