Maltese Finance Minister Slams Opposition MP Over 'Irresponsible' Comments

by Robert Lee, Tax-News.com, London

14 June 2002

Maltese Finance Minister, John Dalli has criticised his Opposition counterpart, Leo Brincat for remarks made to parliament on the risky nature of bond issues by some companies listed on the Malta Stock Exchange.

Speaking earlier this week, the Labour Party's spokesman on Finance warned that Maltese investors are not being cautious enough when investing, and are therefore laying themselves open to unknowing investment in risky 'junk' bonds: 'Companies that are almost bankrupt are going for bonds in an almost criminal way,' he warned parliamentary colleagues.

However, responding to Mr Brincat's remarks in the Malta Business Weekly on Wednesday, Mr Dalli observed that: 'These are irresponsible comments that are nothing but part of the Labour Party's policy to sabotage all sectors of the economy.'

Also speaking to the MBW, the Opposition spokesman played down his earlier remarks, perhaps belatedly aware of the effect that his comments could have on the already low MSE.

Emphasising that the listed companies issuing the 'junk bonds' to which he referred were in the minority (although declining to name them), Mr Brincat told the newspaper that:

'It is very important that the public is educated on these matters and should be told what level of risk they are accepting when they invest in certain bonds. There is a greater need for transparency so that nobody will suffer.'

According to the Malta Business Weekly, both men are in agreement that a credit rating system should be introduced to the Maltese market as soon as possible.

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