Bank Of Valletta Says Nothing About €36 Million Steward Loan After Bankruptcy Filing

Bank of Valletta remained tight-lipped on the future of the €36 million loan to Steward Health Care when contacted by Times of Malta, after the company filed for bankruptcy in a US court on Monday.

In a written response, BOV said it “cannot comment publicly on confidential customer matters.”

“We reiterate that we have very robust due diligence and credit governance processes in place that meet regulatory requirements and expectations. The Bank complies with all its regulatory obligations and informs the market where necessary,” a bank spokesperson said.

BOV was asked if the bank was listed as a creditor in Steward’s bankruptcy filing and what steps the bank had taken to recover the funds.

In a statement released Tuesday afternoon, PN called on BOV to “clarify its position” on the loan following Steward’s bankruptcy.

This must be done in the interest of “the hundreds of thousands of Maltese people who entrust their money to the bank”, as well as in the interest of the Maltese financial system, the party said.

Taxpayers must foot the bill in case of default

BOV had granted Steward a series of loans throughout 2018 and 2019 for an amount of just under €36 million, sparking questions from independent candidate Arnold Cassola about the due diligence carried out by the bank.

The loans were guaranteed by the government, which effectively meant that taxpayers would foot the bill if the company failed to repay the loan.

It is not clear how much of these loans have been repaid.

Last year, Justice Minister Jonathan Attard said Steward had “followed through” on repaying his loans, but news of Steward’s bankruptcy suggests the matter is now in the hands of a Texas court .

Steward took over the concession that had awarded St Luke’s Hospital, Karin Grech Hospital and Gozo General Hospital to Vitals Global Healthcare in 2018, but the company’s presence in Malta was short-lived.

Maltese courts completely canceled the deal in early 2023 on suspicion of fraud. The decision was upheld on appeal later that year, with the courts finding “collusion between Steward and senior officials or his agencies.”