£1 billion of Gibraltar Savings Bank money invested in assets and loans to Government as deposits reach £1.6 billion

A billion pounds of Gibraltar Savings Bank money is invested in assets and loans to the Government and Government companies.

In a letter to Savings Bank depositors, Sir Joe Bossano says short-term funding by way of loan notes have also gone to developers engaged in projects sponsored by the National Economic Plan.

Sir Joe highlights the very important role the GSB plays in investing at a profit in the creation of assets that contribute to the success of the economy.

The Minister says the GSLP Liberals has always believed the Bank should provide attractive interest rates and reinvest deposits principally to promote the Social and Economic Development of the Community. This is a model, he says, that functions in most countries.

The Bank currently has an estimated £1.6 billion in deposits.

Of this, some £460 million is held in cash deposits in banks in Gibraltar and in the Bank of England, while just under £200 million is invested UK companies listed on the London Stock Exchange.

Sir Joe says the recently launched Economic Development Debentures, which provide higher interest rates, have proved 'very popular' with depositors and will be used increasingly to provide short term finance for Gibraltar based projects that will create assets, generate economic activity and increase Government revenue as a result.

Looking ahead, the projection is for GSB profits to increase to £100m of reserves and total deposits to £2 billion by March 2027.

He says the Government sees this £100 million figure as a long-term safety net to protect the Gibraltarian way of life and the security of future generations, and is a figure the GSLP Liberals intend to grow.