S.L. 123.55 Art. 26Beneficial loan arrangements.

(1) The grant by a person to another person of a loan at beneficial terms shall be deemed to be a benefit provided by the former to the latter.

(2) For the purpose of this rule -

(a) "loan" includes any advance or credit and any amount shown in the records of a person as owed by another person;

(b) a loan shall be deemed to have been granted at beneficial terms if no interest is payable by the beneficiary or if the interest so payable is less than the benchmark rate;

(c) the benchmark rate of interest on a loan is such rate as may be determined by the Commissioner from time to time and the Commissioner may, for such purpose, determine different rates for loans granted in different circumstances: Provided that -*

(i) the benchmark rate of interest on a loan granted by a bank set up or licensed under Maltese law or by a financial institution authorised to lend money to the general public in accordance with Maltese law to an employee of such bank or financial institution shall be:

(A) in the case of a loan for the purchase of a home, the average rate on loans to residents of Malta for the purchase of a house, calculated by reference to the interest rates prevailing at the end of each month during the twelve (12) month period ending on 30 September of the previous calendar year, as published by the Central Bank of Malta in the statistics database on interest rates and other key financial market rates;

(B) in any other case, the rate on the main refinancing operations as applied by the Central Bank of Malta as prevailing at the end of the previous calendar year;

(ii) unless and until a different rate is determined by the Commissioner the benchmark rate of interest on any other loan shall be 6.5% per annum.