Savings Bank surpasses debenture target, supports pre-war housing refurbishment

The Gibraltar Savings Bank said deposits for its Economic Development Debentures [EDD] had reached £400m as of March, exceeding expectations.

In an update to depositors, Sir Joe Bossano, who has ministerial responsibility for the bank, said the GSB had expected EDD deposits of £300m in March 2025, up from £143m a year earlier.

“In fact, we have now reached the incredible level of over £400m this March, more than twice our original target,” Sir Joe said in the update.

He said the deposits produced a return for the GSB and enabled it to offer competitive interests rates to depositors, as well as maintaining economic activity.

“We have also now started to provide funding to refurbish pre-war Government flats that had been neglected and unused for up to 20 years, most of which were beyond economical repair,” Sir Joe said.

“These are intended for persons who are not able to purchase 50/50 properties and therefore are not able to pursue home ownership at the moment.”

“These properties will be sold on terms regarding future resale to ensure that the property remains for the benefit of persons on low incomes and does not finish up in the open market and does not gets sold at much higher prices.”

“The level of funding at present is very modest compared to the size of our deposits, but it is a win/win situation for our people, our economy and the Savings Bank, which will end receiving a profit and yet enable an increase in the local home ownership housing stock.”

In the update, which was issued before the Bank of England cut interest rates to 4.25% this week, Sir Joe said the had maintained its rates for EDDs at 5.5% for three years and 5% for five years despite earlier rate cuts in the UK.

But he said the three-year rate would have to be reviewed if there were further cuts in the UK bank rate.