Finance Minister interviewed

The forthcoming issue of The Property Standard features an exclusive interview with Finance Minister Tonio Fenech ahead of the announcement of the 2012 Budget.

Mr Fenech told TPS that Government is expecting a “relative recovery” in the property market, with marginal increases in duty on documents both this year and next.

While the potential supply of property may have increased, this does not mean that the actual supply of property available for sale has increased likewise, the Finance Minister pointed out.

In the interview, Mr Fenech pointed out the important role Government plays in the property market, together with public institutions, including the Central Bank of Malta and the Malta Financial Services Authority.

“Government is conscious of the need for a prudent macro supervision process over banks’ lending activities,” Mr Fenech said. “Government consults with the domestic financial sector’s regulators to ascertain that the banks’ important financing activities, which serve as a crucial contributor to domestic economic growth, is undertaken within prudent parameters.”

The second responsibility for Government, also dealt with in the Pre-Budget Document, is the creation of the right environment, incentives and opportunities for productive investment to take place in the economy. “If domestic savings (and also foreign direct investment) in the economy are channelled to productive investment rather than real estate speculative investment, the risk of overinvestment and over-supply in property is minimised,” Mr Fenech said.

Read the full interview with the Finance Minister in the next issue of The Property Standard.