The European Commission has approved, under EU state aid rules, an €80 million guaranteed co-lending scheme (GCLS) for small and medium-sized enterprises in the context of the pandemic.

The scheme is aimed at providing financial assistance to SMEs that are looking to invest and diversify their business following the coronavirus outbreak and its impact on the wider economy.

The GCLS is a risk-sharing facility involving co-lending by the Malta Development Bank (MDB) for half of the total loan amount and by other accredited commercial banks for the other half.

In addition, MDB will provide a guarantee of up to a maximum of 60% of the loan amount lent by the commercial banks. 

The Commission assessed the measure under EU state aid rules and found that the Maltese scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state.

The measure will be in place until June 30.