Prospective homeowners who plan to buy their property by means of a bank loan tend to give high importance to sustainability incentives offered by banks, as well as the availability of online home loan application capability and flexibility offered for home loan appointments. These insights were presented during the latest Construction Industry and Property Market Report, conducted by KPMG and which was co-sponsored by Bank of Valletta alongside other local banks and sponsors.

During a panel discussion on affordability concerns, BOV CEO Kenneth Farrugia stressed the importance to incentivise the development of sustainable properties, with a particular focus on the social elements of ESG that complement environmental incentives and good governance principles.

“Bank of Valletta is experiencing an increase in the demand for sustainable properties, covering both commercial and residential developments. Within this context, the bank has introduced attractive green financing solutions, such as the Business Energy Loan. Such incentives will certainly make access to finance more attractive and affordable,” Farrugia said.

He also mentioned that, given the importance that prospective homeowners give to flexibility and accessibility in the home loan process, BOV introduced a digital home loan application portal that offers a better experience for those customers wishing to apply for their loans online. 

With regards to property affordability and current inflationary concerns, Farrugia said that the Maltese economy has remained somewhat shielded from challenging external factors, with Malta registering an economic growth of four per cent and unemployment levels at their lowest ever.

“This has enabled Bank of Valletta to keep bank-based interest rates stable over this period,” he noted.

Good governance should be the order of the day and all parties involved in land development should also be responsible for assessing the impact on other factors such as traffic generation

During a separate panel discussion titled ‘The Implications of a New Economic Model’, BOV chairman and economist Gordon Cordina said that there is no need to reinvent the wheel when it comes to revisiting economic models.

“It is somewhat a natural process that economic models need to be revisited every so often. What the country is currently experiencing are growing pains that are part of the growth process as the country continues to evolve.”

Cordina went on to stress the importance for landowners to act responsibly for the greater common good.

“ESG requirements are becoming ever more a reality in today’s world and will become even more stringent in the near future. Good governance should be the order of the day and all parties involved in land development should also be responsible for assessing the impact on other factors such as traffic generation and pollution.”

The BOV Business Energy Loan is financially supported by the Energy Efficiency and Renewable Energy Malta Fund (EERE) which is co-financed by the Republic of Malta and the EU under the European Regional Development Fund (ERDF). The objective of this fund of funds and its first loss guarantee combined with an interest rate subsidy scheme is to support the access of the final recipients for their investments in energy efficiency and renewable energy measures.

All loans are subject to normal bank lending criteria and final approval from the Bank. The term of the loans must not go beyond retirement age. Further terms and conditions are available from

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