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22nd November 2022, 08:46

Together Gibraltar points out deposits at Gibraltar Savings Bank are guaranteed by Government, in other words, the taxpayer

Published by GBC News

Together Gibraltar points out the Gibraltar Savings Bank is not a commercial bank and that all deposits are guaranteed by the government, in other words, the taxpayer.

Having previously announced the stadium would be built at no cost to the taxpayer, Together Gibraltar accuses the government of backtracking on its promises.

The new football stadium was to have been funded by the GFA together with an investment from UEFA of £15m.

However, Together Gibraltar says the recent announcement that the Gibraltar Savings Bank will "sponsor" the development as an "investment...in the economic plan for Gibraltar" means the government's assurances, that the taxpayer would not fund the development, is untrue.

This is because Savings Bank deposits are guaranteed by the government, which under the GSB Act, means the taxpayer, and the party says if the scheme is a failure, then the taxpayer will foot the bill.

Together Gibraltar accuses the government of using deliberately confusing language to obfuscate the reality of the situation now that the new stadium is estimated to cost £100m.

It calls for clarity of the terms of the financial agreement and calls on the government to answer its questions as a matter of urgency.