The EU on Friday signed an agreement sealing its commitment to support small and medium Maltese enterprises with an additional €28 million in a bid to set off the economic blow brought about by the COVID-19 pandemic.

The EIB Group, made up of the European Investment Bank and the European Investment Fund, signed an agreement with the Maltese government and the European Commission to increase financing available under a programme known as the SME Initiative

So far, through the SME Initiative in Malta, Bank of Valletta and BNF Bank have assigned a target portfolio of nearly €90 million for new SME financing in the form of loans.

Due to the successful uptake of this initial agreement and the coronavirus pandemic, the Maltese authorities, the EIB Group and the European Commission agreed to add a further €28 million of SMEs financing under advantageous terms, such as reduced interest rates and improved collateral requirements, increasing the target portfolio to €118 million.

Elisa Ferreira, European Commissioner for Regional Policy and Structural Reforms, welcomed Malta's decision to increase the available financing.

"This is a smart move that will directly benefit Maltese small and medium-sized businesses and entrepreneurs giving them the financial boost they need to overcome the side effects of the pandemic outbreak, turning their ideas into concrete projects or expanding beyond their local markets," she said.

EIF Chief Executive Alain Godard meanwhile noted that the two local banks have already managed €72 million of SME financing to help companies over the last four years.

"I am convinced that the additional finance will be instrumental in supporting more jobs and growth and mitigate the effect of the COVID-19 pandemic, via the combination of European Structural and Investment Funds, EU Horizon 2020 and EIB Group resources," he added.

 

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