INTEREST RATES ON LOANS AND ADVANCES [ S.L.371.02 1
SUBSIDIARY LEGISLATION 371.02
INTEREST RATES ON LOANS AND ADVANCES 
ORDER
1st January, 1994
LEGAL NOTICE 188 of 1993.
Citation.
Advances Order.
Maximum interest 
rate on loans and 
advances 
denominated in 
Maltese liri.
2. The maximum rate of interest that commercial banks or
financial institutions may charge on loans and advances
denominated in Maltese liri shall be 3% above the Central Bank of
Malta’s minimum discount rate, except that in the case of loans and
advances for:
( a ) one residential unit for own use, up to the first
Lm15,000, when the maximum rate of interest shall be
1.5% above the said minimum discount rate, and
( b ) property development for resale or for speculative
purposes and for lending to non-residents, when in all
such cases the maximum rate of interest shall be 3.5%
above the said minimum discount rate.
Maximum interest 
rate on loans and 
advances 
denominated in 
any foreign 
currency.
3. The maximum interest rate that commercial banks or other
financial institutions may charge on loans and advances
denominated in any foreign currency in respect of any category of
lending shall not exceed by more than 5% per annum the prevailing
London Inter-Bank Offered Rate (LIBOR) applicable at the time of
sanction of the loan or advance and/or at such other times as may
be agreed between the lender and the borrower.
Rates of interest 
are inclusive of all 
charges.
4. The rates of interest applicable under articles 2 and 3 of
this Order shall be inclusive of any management and/or other
administration fee, commission and any other cost, howsoever
described, charged to a customer on a regular basis.
Directives and 
guidelines.
5. The Central Bank of Malta is hereby empowered to issue
such directives and guidelines as it may deem appropriate for
carrying into effect the provisions of this Order.
