BOV SME Invest Scheme

Bank of Valletta, in collaboration with the Malta Development Bank (MDB), has launched ‘BOV SME Invest’ a product aimed at SMEs planning new capital investment projects. BOV SME Invest provides easier access to finance to SMEs through reduced collateral requirements and finance costs.

Enterprises may seek bank financing up to a maximum of €750,000, at attractive interest rates and reduced collateral obligations. The new financing package was launched during a press conference presided over by The Hon Dr Joseph Muscat. The event was addressed by BOV Chairman Taddeo Scerri and Albert Frendo, the Bank’s Chief Credit Business Development Officer together with Prof Josef Bonnici the Chairman of the Malta Development Bank. BOV SME Invest will provide €50 million financing to local SMEs through a €10 million guarantee provided by the Malta Development Bank,’ said Albert Frendo. This Guarantee allows Bank of Valletta to reduce its collateral obligations together with a reduction in interest rate of 2% below market rate.’ ‘SMEs face a myriad of challenges to launch their business, bring their projects to fruition and expand their horizons,’ continued Mr Frendo. ‘BOV SME Invest eases the burden of seeking finance and complements other EU funded financial instruments such as the BOV JAIME scheme that is being well received by the market.’

 
 

‘In line with its mission of addressing market failures and investment gaps, the Malta Development Bank will provide a €10 million guarantee against which Bank of Valletta will leverage €50 million to local SMEs,’ said Prof Bonnici. ‘Malta’s economic success depends largely on the growth of SMEs. With SMEs accounting for around two thirds of Malta’s workforce, this product will act as a catalyst to improve access to Bank financing for SMEs, spurring growth and innovation.’ The benefit of the guarantee will be passed on to the SME through a reduced level of collateral and a lower rate of interest. ‘The BOV SME Invest scheme is the product of extensive discussion between Bank of Valletta and the Malta Development Bank, leveraging on the expertise and experience of both parties in this area’ continued Prof Bonnici. ‘This is the first financial instrument of its kind and is a clear manifestation of the MDB’s objective to complement the commercial banks and to work in partnership with the banks to crowd in new investment. We are confident that SME Invest will act as a benchmark for similar programmes and initiatives in the future.’

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'BOV SME Invest provides a direct injection into Malta's economy and through the €10 million guarantee by the Malta Development Bank, we are effectively creating €50 million of new business that will be injected into the Maltese economy that would result in a potential total investment of €90 million,' said the Hon Dr Joseph Muscat. 'This is in line with the MDBs aim of contributing towards sustainable economic development that benefits the Maltese community through economic growth and infrastructure development.' "The decision to create the Malta Development Bank was taken over four years ago and this collaboration between Bank of Valletta, Malta's largest Bank, justifies the MDB's role and business model and bridges the credit market gaps existing in the SME market." continued Dr Muscat. "The co-financing will stimulate more funding of infrastructural projects.'

For more information about this programme, visit a BOV Branch or Business Centre or send an email to smefinance@bov.com. All loans are subject to normal bank lending criteria and final approval from the Bank. Terms and conditions are available from www.bov.com 

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