The latest shocker: government guarantees another Electrogas Malta bank loan up to €360m

Exactly what is he celebrating?

The government announced this evening, timing the announcement perfectly for maximum lack of interest due to the holiday shutdown, that it has guaranteed yet another bank loan taken by Electrogas Malta, this time to the tune of a truly shocking €360 million.

This replaces the original guarantee of €88 million, which now seems paltry by comparison to this shocker.

This means that if Electrogas Malta defaults on its obligations to the banks, the government of Malta will be liable to make good for this private company’s debts to a maximum of €360 million of public money and public property.

Electrogas Malta has so far borrowed a total of €560 million from the banks: €101 million from the Bank of Valletta, and the new loan of €450 million from the Bank of Valletta, HSBC Bank plc, Société Générale and KFW IPEX-Bank GmbH.

The government said that Electrogas Malta has paid it a “guarantee fee” of €8.8 million.

The deal was made at the end of last month but announced only now when people are least likely to pay attention.