MDB Covid-19 Guarantee Scheme extended until 31 December 2021

MDB Covid-19 Guarantee Scheme extended until 31 December 2021

The Malta Development Bank (MDB) is pleased to announce that the European Commission, in its decision of 15 October 2021, has approved the prolongation of the Bank’s existing Covid-19 schemes by a further three months to 31 December 2021.

The objective of the MDB’s schemes is to preserve the continuity of economic activity during and after the COVID-19 outbreak, thus ensuring that undertakings impacted by the pandemic continue to have access to the necessary bank facilities to finance their working capital. As these facilities will continue running until end of year, businesses requiring such financing are encouraged to approach one of the nine accredited commercial banks intermediating the schemes.

Through the COVID-19 Guarantee Scheme (CGS) which was launched in April 2020, the MDB is leveraging on a Government guarantee of €350 million by mobilising commercial banks’ liquidity into the flow of credit to the real economy. Commercial banks are thus being provided with very substantial credit risk reduction and capital relief enabling the creation of a portfolio of up to €777.8 million in new working capital loans to all businesses, regardless of size or sector. Eligible working capital costs under the CGS include wages, rental costs and utility bills, among others. 

Thanks to this extension, the MDB will continue guaranteeing new loans sanctioned by the nine accredited banks until the end of 2021. Moreover, the extension is also applicable to MDB’s COVID-19 Interest Rate Subsidy Scheme that provides a grant of up to 2.5 percentage points on the interest payable on the CGS loans for the initial two years of the term.

As at end September 2021, around 610 local businesses, operating across all economic sectors, have benefitted from these advantageous schemes, collectively having been granted a total of almost €510 million in sanctioned working capital loans. Such loans reflect 12.5% of the overall currently outstanding loans extended by the banking system to non-financial corporations in Malta, attesting to the fundamental role played by the MDB in supporting economic activity.

MDB’s Chairman Prof Josef Bonnici commented that: “while the MDB’s focus is now turning to the development of new schemes to support new investment and sustainable growth, we are cognisant that there may be pockets of businesses that are still facing liquidity constraints and may not yet have utilised our schemes. Therefore, this extension is a welcomed news as it will help these businesses to benefit from the support being made available through these schemes.”


L-Iskema ta’ Garanzija tal-Covid-19 tal-MDB estiża sal-31 ta’ Diċembru 2021

Il-Bank Malti għall-Iżvilupp (MDB) bi pjaċir iħabbar li l-Kummissjoni Ewropea, b’deċiżjoni tal-15 ta’ Ottubru 2021, approvat it-tiġdid tal-iskemi eżistenti tal-Covid-19 bi tliet xhur oħra sal-31 ta’ Diċembru 2021.

L-għan tal-iskemi tal-MDB huma li tkun imħarsa l-kontinwità tal-attività ekonomika waqt u wara l-pandemija, biex ikun żgurat li l-kumpaniji milquta mill-COVID-19 jibqa’ jkollhom aċċess għall-faċilitajiet bankarji meħtieġa biex jiffinanzjaw l-operat tagħhom. Hekk kif dawn il-faċilitajiet issa se jibqgħu disponibbli sal-aħħar tas-sena, negozji li għandhom bżonn dan il-finanzjament, huma mħeġġa biex jagħmlu kuntatt mad-disa’ banek kummerċjali akkreditati li qed jintermedjaw dawn l-iskemi.

Permezz tal-Iskema ta’ Garanzija tal-COVID-19 (CGS), li tnediet f’April 2020, l-MDB permezz ta’ garanzija tal-Gvern ta’ €350 miljun qed jimmobilizza l-likwidità tal-banek kummerċjali biex ittejjeb il-provvista ta’ kreditu fl-ekonomija reali. Il-banek kummerċjali b’hekk qed jitnaqqsilhom sostanzjalment ir-riskju fuq il-kreditu u fuq il-kapital, b’mod li nħoloq portafoll li jista jitla sa €777.8 million f’self fuq ’working capital’ għan-negozji kollha, irrispettivament mid-daqs jew settur. Dan jista’ jintuża għal spejjeż marbuta ma’ pagi, spejjeż ta’ kiri u kontijiet tad-dawl u l-ilma fost l-oħrajn.

Grazzi għal din l-estensjoni, l-MDB se jkompli jiggarantixxi self ġdid approvat mid-disa’ banek akkreditati sal-aħħar tas-sena 2021. Aktar minn hekk, din l-estensjoni hija applikabbli wkoll għall-Iskema ta’ Sussidju fuq ir-Rata tal-Imgħax tal-COVID-19 tal-MDB, li tipprovdi għotja li tlaħħaq 2.5 punti perċentwali fuq l-imgħax li għandu jitħallas fuq self tas-CGS għall-ewwel sentejn tat-terminu.

Sal-aħħar ta’ Settembru 2021, madwar 610 negozju lokali, fis-setturi ekonomiċi kollha, gawdew minn dawn l-iskemi vantaġġjużi, u komplessivament ingħataw self fuq ’working capital’ għal valur ta’ kważi €510 miljun. Dan is-self huwa ekwivalenti għal 12.5% tas-self attwali li kumpaniji f’Malta għandhom mas-sistema bankarja, riflessjoni tar-rwol fundamentali tal-MDB biex jappoġġja l-attività ekonomika. 

Iċ-Chairman tal-MDB, Prof Josef Bonnici, ikkumenta li “filwaqt li l-MDB issa qed idawwar l-attenzjoni tiegħu fuq l-iżvilupp ta’ skemi ġodda li jappoġġjaw investiment ġdid u tkabbir sostenibbli, aħna konxji li jista’ jkun fadal xi negozji li għadhom qed jiltaqgħu ma’ limitazzjonijiet ta’ likwidità u jista’ jkun li għadhom m’użawx l-iskemi tagħna. Għalhekk, din l-estensjoni hija aħbar pożittiva għaliex se tkompli tgħin lin-negozji jgawdu minn dan l-appoġġ disponibbli għalihom permezz ta’ dawn l-iskemi.