Banks have confirmed that the bridge loan granted to Electrogas for the gas and power project has been fully repaid, Minister Konrad Mizzi said on Friday.

Since the loan has been repaid, the government's guarantee has now been withdrawn, the minister added.

The €360 million government guarantee was given on a €450 million bridge loan issued by four banks to Electrogas.

The European Commission had said last January that the Electrogas project did not fall foul of EU State aid rules. This paved the way for the signing of a security of supply agreement, guaranteeing that the government would buy energy from Electrogas if Enemalta were to go bust.

Earlier in December, a security of supply agreement between the government, Enemalta, and Electrogas was signed, after Electrogas secured funding for the project to the tune of €550 million.

Read: Government lifting Electrogas guarantee as security of supply deal signed

The loan had been secretly extended before the May election. In September, concerns were raised by the Finance Minister's permanent secretary about what he termed a "serious" default.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.