INDICATIVE CALENDAR OF ISSUES OF MALTA GOVERNMENT SECURITIES FOR 2001

With a view to enhancing the transparency of the Government securities market and contributing to greater efficiency and predictability, the Government has decided to start publishing an indicative calendar of the annual programme of issues of Government securities. Such a calendar will assist investors to gain a better insight into what investment opportunities will be available during the course of the year. It will also help other prospective issuers to plan the timing of their issue so as to avoid undue pressures on the local capital market.

I. Malta Government Stock indicative issue programme for 2001

1. Nine Stocks for a total of Lm 53.8 million mature during 2001 (Vide table 1 below). Of these, five have a fixed date of redemption whereas four (the 3% Local Development Registered Stocks for a total of Lm 2.7 million) can be redeemed on any day of the year. It has been decided that these four stocks will be redeemed on the 24^th May 2001.

2. It is currently projected that Malta Government stock issues in 2001 will amount to between Lm125 million and Lm150 million. However, this projection is a tentative one and the actual amount of Stock issues in 2001 will depend on the outcome of the privatisation programme which is currently under way. Of this projected amount, Lm51.8 million represent conversion issues to refinance eight of the nine stocks that will mature during the year.

3. The 2001-issue programme will be spread over four issues that are planned to take place in the following months: March, May, August and November.

4. It is planned that an amount of between Lm30 million to Lm50 million will be offered in each issue, depending on market conditions.

5. The maturity structure of the 2001 issues will be medium term (6 – 10 years) and long term (11 – 15 years). Only one bond will be offered on each issue date.

6. The Treasury reserves the right to alter the amounts, tenures or issue dates indicated above in the event of exceptional circumstances or significant changes in market conditions.

Definitive details of the terms and conditions of each issue will be announced at least two to four weeks before the actual date of each issue.

Table 1 – List of Stocks maturing in 2001

II. Treasury Bill indicative issue programme for 2001

1. Treasury bills are issued by the Government primarily to meet temporary shortfalls in its cash flow. Government, however, normally auctions such bills on a weekly basis in order to enhance the liquidity and the sustained development of the local money market. The Treasury Bill indicative issue calendar for 2001 is given in Attachment I. At present, the maximum amount of outstanding Treasury bills permissible by law is Lm200 million.

2. So far, the Government has been issuing Treasury bills in tenures of one month, three months, six months and one year, the latter being the maximum tenure allowed by law. The Government intends to start issuing also nine-month bills in order to broaden the range of tenures available to money market participants and to foster the further development of the money market yield curve. The focus will remain on the 3-month tenure, which constitutes the money market benchmark.

The Treasury reserves the right to alter the tenures or issue dates indicated in Attachment 1 in the event of changes in market conditions.

4. Definitive details of the terms and conditions of each Treasury Bill auction will be announced at least two to four weeks before the actual date of each issue.

Accountant General