“Merkanti Bank to forfeit Maltese banking license…”

Merkanti Bank has announced that it will voluntarily relinquish its Maltese banking licence and fully refund all customer deposits.

In a company update issued on Tuesday, the bank said it intends to convert into a non-regulated entity “to streamline its consolidated cost structure and improve profitability going forward.”

The bank emphasised that this step remains at the “planning phase,” and that no formal board or regulatory approvals have yet been obtained.

This development follows reports last week that the bank was preparing to wind down its Maltese operations, with employees receiving termination notices ahead of what it described as a “strategic business decision.”

Merkanti Holding plc currently has a €25 million bond issue listed on the Malta Stock Exchange. In 2024, bondholders approved amendments to extend the bond’s maturity date by seven years, to 2033, and to increase the interest rate from 4.00% to 5.70%.

According to the company, “based on information presently available,” surrendering the banking licence and shifting to an unregulated structure should not affect its ability to meet obligations to bondholders.

Merkanti Bank, formerly BAWAG Malta Bank, specialises in trade and structured finance and operates as a subsidiary of Scully Royalty Ltd, a merchant banking group listed on the New York Stock Exchange.

The bank had previously explored a potential merger with Sparkasse Bank Malta, with an agreement reached in 2022. However, the deal ultimately fell through. In 2023, Merkanti Holding said the decision to terminate the merger was “not related to any aspect of the regulatory approval process” but stemmed from timing issues and global shifts in interest rate policy.

MedservRegis expands beyond Malta facilities as offshore demand surges

MedservRegis Malta has outgrown its current facilities, prompting the company to acquire more land to support expanding operations.

Founded to serve Malta’s early offshore oil and gas sector, Medserv grew rapidly after its 1990s privatisation, becoming a key partner to global players like ENI. The company runs a 24/7 shore base supplying offshore platforms needing “everything under the sun,” ensuring fast turnaround without competing maritime traffic.

Now operating as MedservRegis, the group has expanded far beyond its 1974 Malta roots, becoming a listed company active across four continents, including Libya, Egypt, Cyprus, Oman, Iraq, Saudi Arabia, the UAE, and several African and South American markets.

“The volume of cargo and operational intensity have outgrown our existing Malta facilities,” Mr Bartolo says. “Our operations run around the clock, with minimal downtime….” He adds, “Our operations only pause for about two hours on Christmas day and another two hours on New Year’s Day.”

Malta’s role is increasingly shaped by Europe’s energy diversification and emerging greener alternatives, with projects like the Libya–Europe gas pipeline reinforcing the island’s strategic position.

“Malta is very much a project-driven base…,” Mr Bartolo notes. Libya in particular is driving major activity: “We expect to remain busy for the next five years with work that began last June. If a rig requires 1,000 pipes, we deliver them in batches of 50.”

MedservRegis plc has also staged a strong financial recovery, returning to profit in 2023, restoring dividends in 2024, and strengthening revenues from logistics support services. A recent €22 million bond issue refinanced debt and backed further expansion, contributing to healthier cash flow and lower borrowing costs. Cash reserves are projected to exceed €23 million by end-2026.

Looking ahead, the Malta base will remain key to major projects, including offshore drilling in Libya and long-term work in Suriname. Medserv’s expanding infrastructure and improved financial position cement its growing role in Mediterranean offshore logistics.

Foreign News

Gold’s 2025 Surge Sets High Bar as WGC Forecasts Narrow Trading Range for 2026

Gold surged more than 60% in 2025, driven by a confluence of geopolitical risks, monetary easing, and sustained central-bank demand. After a year marked by over 50 record highs and the metal’s strongest annual performance since 1979, investors are now assessing whether this momentum can continue into 2026.

Unlike prior cycles in which a single catalyst often dominated, gold’s 2025 rally was supported by multiple reinforcing factors.

World Gold Council Outlook

Looking ahead, the WGC expects many of the forces that propelled gold’s exceptional performance in 2025 to remain influential in 2026. However, it stresses that the market’s starting conditions have fundamentally shifted. Unlike early 2025 — when valuations were more accommodative — current prices already reflect what the Council calls the “macro consensus”: expectations of steady global growth, moderate US rate cuts, and a broadly stable dollar.

In this context, the Council views gold as fairly valued. Real interest rates are no longer declining meaningfully, the opportunity cost of holding gold has normalized, and the exceptionally strong momentum that characterised 2025 has eased.

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