The Malta Development Bank will be acting as a ‘Gateway to Finance’ in the context of Malta’s twin green and digital transition – a strategic alignment with national policies and priorities to be formalised in a Strategy Document which will be made public in the coming days.

Paul V. Azzopardi told The Corporate Times that through its new strategy, the Bank will enhance its commitment to support the green and digital transition, adding that this should help speed up the adjustment needed to tackle the new reality in a manner that will enhance Malta’s competitiveness while further crowding-in the private sector.

“This is where the MDB can address market inefficiencies by financing projects that align with national and European objectives while advancing public policy goals,” explains Azzopardi.

European economies, including Malta, are pursuing a dual strategy aimed at integrating the green and digital transitions as the key drivers of economic resilience and growth.

While this transition creates an environment that fosters creativity and innovation, both the nature and the size of these efforts may not attract sufficient private investment due to their magnitude, their innovative elements or extended payback periods, thus creating a gap in the financial ecosystem.

After six years of rapid growth, fuelled by its central role during the pandemic, the Bank is now stepping up its efforts to finance projects that contribute to sustainable development, carbon-neutral projects, digitalisation and climate initiatives, while continuing with its mission to promote balanced growth and fostering social cohesion.

“We want to close the investment gaps in the innovation, new technologies and clean energy sectors while scaling up support for SMEs and reinforcing efforts in the social infrastructure areas,” adds Azzopardi.

To put resources behind its promises, the Bank offers two extremely generous guarantee schemes to SMEs through major commercial banks, the SME Guarantee Scheme and the Guaranteed Co-Lending Scheme.

To gain a better understanding of societal and entrepreneurial needs, in recent weeks, the Bank has carried out an extensive outreach effort, meeting with several stakeholders, including business and trade organisations, employers’ associations and unions, to not only present its product offering but to also understand how these could be improved to service the community better.

While the MDB has in recent years secured financing and guarantees through different agreements with Government and international institutions, such as the European Investment Bank and the European Investment Fund, in recent months it has submitted itself to an extensive audit and review process to become a direct implementing partner of InvestEU, a Fund which combines thirteen centrally managed EU financial instruments and the European Fund for Strategic Investments (EFSI) into one instrument.

This process, allowing the MDB direct access to EU guarantees, is expected to be completed later this year and will solidify the Bank’s role as Malta’s access point to the EU guarantees.