Tista' taqra bil- Malti.
More than half of Malta’s foreign direct investment (FDI) is “phantom” capital.
The Financial Times reported the findings of a study carried out by the International Monetary Fund and the University of Copenhagen.
The study into global FDI found that 40% of flows are used as a vehicle for financial engineering. The phantom capital is designed to minimise companies’ tax liabilities rather than financing productive activity.
The research shows that half of the phantom FDI is in Luxembourg and the Netherlands.
The researchers found that more than half of the FDI in Malta, Ireland, Switzerland and several British overseas territories and crown dependencies was “phantom” capital.
Global FDI amounts to €13.59 trillion with 40% passes through empty corporate shell companies. These companies would not have real business activities.