BoV refute allegations of government interference

Bank Of Valletta yesterday refuted imputations made by Alternattiva Demokratika on Friday that decisions at the bank are influenced by the government.

In a statement, BoV said private shareholders held the majority of shares in the bank. It said Government had a minority shareholding amounting to 25 per cent.

"Should Government decide to sell its 25 per cent shareholding in BoV, this would simply constitute a divestment of Government's minority shareholding in the company. This is very different from a privatisation exercise. Indeed, the privatisation of BoV had already taken place years ago."

It said that the government's shareholding entitled it to appoint two directors out of nine on the board of directors. One of these is the bank's chairman.

BoV said the board determined and approved the bank's policies and was guided exclusively by commercial considerations.

BoV also stressed that all credit decisions were taken independently of any outside interference or influence and all proposals were assessed on their individual merits.