GRTU expresses great worry on Malta’s financial services situation – Innocent people are suffering and business is being driven away

Two weeks after the accounts at Sata Bank has been frozen no real timeline has been released. Simple steps to take care of the worries of the investors we have worked so hard to attract such as a customer care system is still completely lacking. Businesses are being given close to no information outside the bank’s doorstep and business closures are knocking on our doors. Responsibility must be taken for the additional damage that is being created.

The fact that the Bank had to be closed and immediate action had to be taken is not being put into question. The regulators are the only ones aware of what the extent of the problems are and how best to deal with them, within the powers conferred to them.

The situation is however very grave. Apart from the fact that this is hitting Malta’s reputation very hard and many businesses that have come to invest in Malta have told GRTU that they will not look at Malta ever again, there is a level of unfairness where the good has been castigated with the bad.

There are genuine businesses that were banking with Sata Bank because their technology was superior and because other banks were too traditional and slow to accept their innovative investments. It was after all a bank licensed by the Maltese Government. These businesses have had their funds frozen, they are unable to pay their employees’ wages, their rents, fiscal contributions, and send or receive any money. Hundreds of businesses are unable to trade. The level of pressure and stress these people are suffering is uncalled for.

We expect the regulator, the Minister for Finance and the bank administrators to act with respect and responsibility because for no reason should people be treated like this and business allowed to close. Everyone is shifting responsibility and hiding behind the powers conferred by law but they themselves are making matters worse. Immediate actions are required to issue procedures of handling these people and their funds.

Who has to pay will pay but who doesn’t should not be treated as collateral damage.

Through the link you can access footage from the last meeting GRTU held yesterday on the subject.

https://wetransfer.com/downloads/72223baa3fadad3939098e046837617820181108180910/fcaa3d27aebbd298e268c14c8bfc943620181108180910/3fa3af