BoV registers strong response for bus loan scheme

By Marika Azzopardi

Barely one month since its Bus Finance Package was introduced, Bank of Valletta has confirmed that the scheme has had a positive response from the owners of Malta’s rapidly ageing bus fleet and that take up has been very encouraging. Most of the queries by bus owners have actually resulted in take up of the package.

John Cassar Torreggiani, BoV Executive Head-Credit confirmed that the package was made in agreement with the Malta Transport Association and accordingly contained features tailor-made for the bus owners’ needs, "The feedback is very positive and we have several enquiries on the scheme from bus owners on a daily basis. Enquiries have also been received from local agents of foreign manufacturers and local importers of buses."

Asked whether another similar scheme was in the making, Mr Cassar Torreggiani explained that it is always ready to take up any viable business opportunity that emerges on the market. "We are very flexible and dynamic to come out with packages tailor-made for each opportunity. Such packages are worked out by the bank on its own steam and also together with other entities."

Earlier this summer BoV launched a new finance package for bus owners who are planning to change their old bus for a new and modern vehicle. This new package provides the combination of a letter of credit and a loan and is linked to the subsidy of a maximum sum of Lm32,000, which government is offering to bus owners looking to buy a new bus.

The package under this scheme is for a maximum amount of Lm45,000 for each bus purchased, up to a maximum of two buses per applicant and based on the amount of subsidy granted by the Malta Transport Authority.

A maximum of Lm13,000 may be utilised as part payment/deposit on the new bus. The subsidy granted by the Malta Transport Authority (maximum Lm32,000) must be paid directly to the Bank within one month from the issuance of the certificate of inspection of the bus in Malta by the Malta Transport Authority or its designate. Capital and interest on the loan portion of this package, for a maximum of Lm13,000, will be repaid by monthly instalments over a maximum period of 10 years.

A total of 147 registered bus owners have reportedly signed an agreement with the government that entitles each owner to the subsidy of Lm32,000 to modernise their vehicles.