The European Commission on Tuesday disbursed €177 million in loans to Malta, as part of its €14 billion SURE financial aid instrument.
Loans provided through the EU Support to mitigate Unemployment Risks in an Emergency facility are intended to help member states cover costs directly related to the financing of national short-time work schemes, and other similar measures introduced in response to the COVID-19 pandemic.
Tuesday's disbursement of funds is the third and final instalment of EU SURE loans given to Malta, following two initial payments of €120 million each.
The EU is financing its SURE facility by issuing social bonds for five, 10 or 15 years.
Meanwhile, parliamentary secretary for EU funds Stefan Zrinzo Azzopardi said that a total of €164 million in European funds have been allocated towards measures addressing the COVID-19 pandemic.
The funds have been used to support the Maltese health system and maintain jobs in industries that have been adversely affected by the pandemic, he told parliament as he provided a breakdown of EU funding focused on pandemic initiatives.
Zrinzo Azzopardi said that another agreement was reached between the European Commission and the government to re-allocate about €53 million from the 2014-2020 budget allocated to Malta.
€18 million will go towards the health sector, with the rest used for the COVID wage supplement, bringing this up to €164 million.
Zrinzo Azzopardi said that the €111 million in grants under the REACT-EU initiative approved by the European Commission on Tuesday, have also been allocated towards the wage supplement scheme. This provides relief in the form of a basic wage cover to employees affected by the pandemic.
This supplement, he said, had saved more than 100,000 jobs. He welcomed the cooperation shown by the European Commission and its receptiveness to take on board the proposals brought forward by the managing authority on behalf of the government.
“This reallocation augurs well for Malta’s capacity to come out of the pandemic expeditiously, with a strong health sector and an economy that will be once again ready to resume the steady drive of the past years”, Zrinzo Azzopardi said.
Use of the funds is effective immediately.