HSBC has confirmed its participation in the Malta Development Bank COVID-19 guarantee scheme.

The government-backed scheme helps banks mitigate credit risk on loans given to businesses experiencing cash flow and liquidity pressures during the coronavirus pandemic, through gaurantees. 

Around €350 million has been made available as part of the EU-approved scheme. 

In a statement on Wednesday, HSBC said this development complemented a series of initiatives already taken by the bank at the outset of the COVID-19 pandemic, including capital repayment holidays, fee-free temporary short-term working capital and trade finance support.
 
Head of Commercial Banking Joyce Grech said: “The launch of the Malta Development Bank COVID-19 Guarantee Scheme will further enable us to support business customers who are looking for financial support during this uncertain time.