The Accountant General has invited bondholders of the maturing 62+ Malta Government Savings Bond (MGSB) – Issue 2021 (Maturing Bond) to roll over the full maturing value into a new bond issue, offering an increased interest rate with effect from 15th October.
A debate about Malta’s rising debt has been ongoing for a number of years, and as of July, Central Government debt stood at €11.7 billion, an increase of €540.3 million when compared to 2025. Economists, however, believe that current debt levels remain manageable.
Borrowing has increased and the costs of borrowing remained stable, but in an increasing interest rate environment, rates are expected to rise and this latest announcement could be an indication of this. In 2025, interest payments on Government debt stood at around €300 million, and these are expected to rise to above €380 million in 2028, although interest costs are a low percentage of GDP. This bond's interest rate increase could also be seen as an indication as moving away from the low interest rate levels of the Covid-pandemic period.
The new issue will be called the 62+ Malta Government Savings Bonds – Issue 2026. Existing bondholders of the 62+ MGSB – 2021 electing to rollover their holdings in the new bond issue will be allocated the corresponding nominal value they held in the maturing bond.
The new bond issue shall be issued with similar terms as the existing 62+ MGSB – Issue 2021, save for the interest rate which will increase from 3 per cent to 3.50 per cent per annum, fixed for the 5-Year term.
Like the current bonds, the new bonds won’t be able to be negotiated, assigned, transferred onto any other individual or pledged.
The new bond issue will be issued as set out in the prospectus published on 18th September 2026.
Arrangements for rollover
A pre-printed application form showing the nominal amount held in the 62+ MGSB – 2021 is being sent by the Accountant General to all the eligible holders of the 62+ MGSB – Issue 2021 whose name appeared on the register at close of business of Friday, 4th September 2026.
“Holders who wish to rollover their holdings should sign the application form and send it in the self-addressed envelope provided with the form. Application forms are to be sent by not later than close of business of Friday, 2nd October 2026.” They will then be registered as holders of the new 62+ Malta Government Savings Bonds – Issue 2026, with effect from 15th October 2026.
Bondholders who do not wish to rollover their holdings do not need to do anything and will receive the whole redemption proceeds on 15th October 2026 (the maturity date).
Terms of the new 62+ MGSB – Issue 2026
The terms of the new bond are similar to the terms and conditions of the 2021 issue, except for the interest rate which shall be 3.50 per cent per annum for the whole five-year term of the bond maturing in the year 2031.
Interest will be paid semi-annually in arrears on 15th April and on 15th October of every year during the term of the bond. Bondholders may withdraw the whole amount invested before the 15th October 2031 (the maturity date) subject to a penalty equivalent to 3 months gross interest on the principal amount withdrawn, at the interest rate paid by the bond.
More information can be found in the prospectus which can be downloaded from the Treasury’s website.
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