S.L. 330.9 Art. 57Public equity support tool.

(1) The Ministry responsible for Finance may, while complying with Maltese company law, participate in the recapitalisation of an institution or an entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) by providing capital to the latter in exchange for the following instruments, subject to the requirements of the CRR:

(a) Common Equity Tier 1 instruments;

(b) Additional Tier 1 instruments or Tier 2 instruments.

(2) To the extent that the Government of Malta’s shareholding in an institution or an entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) permits, such institutions or entities subject to public equity support tools in accordance with this regulation shall be managed on a commercial and professional basis.

(3) Where the Ministry responsible for Finance provides public equity support tools in accordance with this regulation, it shall ensure that its holding in the institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) is transferred to the private sector as soon as commercial and financial circumstances allow.