MDB extends Covid-19 Guarantee Scheme until June 2022

MDB extends Covid-19 Guarantee Scheme until June 2022

The Malta Development Bank (MDB) has announced the extension of its successful Covid-19 Guarantee Scheme (CGS) until June 2022.

In light of the observed economic recovery and unfolding Covid-19 developments, in November 2021 the Commission has adopted a limited prolongation of 6 months of the State aid Temporary Framework, until 30 June 2022. This will allow Member States, where needed, to extend their support schemes and ensure that businesses still affected by the crisis will not be cut off from necessary support. To this end, the MDB wrote to the Commission to extend the Bank’s Covid-19 facilities in line with the amendments of the Temporary Framework and in its decision of 12 January 2022, the European Commission approved the requested prolongation of the MDB’s existing Covid-19 schemes until 30 June 2022.

In its latest notification, the MDB also asked the European Commission to alter some of the terms of the CGS loans, both new and existing, to provide for more flexibility where needed. In its decision the European Commission approved that, in exceptional cases and at the discretion of the commercial banks, the loan term can be extended from 72 months to a maximum of 96 months (inclusive of the moratorium period). In the event of such an extension of the maturity, there will also be a change in the guarantee fees, which would be applicable retrospectively, and subject to other terms and conditions. 

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 now continue running until end June 2022, businesses requiring such financing are encouraged to approach one of the nine accredited commercial banks intermediating the schemes. Moreover, the extension is also applicable to MDB’s COVID-19 Interest Rate Subsidy Scheme, whereby applicants can still benefit from a grant of up to 2.5 percentage points on the interest payable on the CGS loans for the first two years of the term.

MDB’s intervention through the CGS was crucial in ensuring that Maltese businesses survive the severe liquidity constraints they were facing due to restrictions brought forward by the pandemic spread.  Launched in April 2020, MDB’s CGS is leveraging on a Government guarantee of €350 million by mobilising commercial banks’ liquidity into the flow of credit to the real economy. Through the CGS, the MDB is providing a guarantee of 90% on new working capital loans granted by commercial banks and this capital relief is 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.


L-MDB jestedni l-Iskema ta’ Garanzija tal-Covid-19 sa Ġunju 2022

Il-Bank Malti għall-Iżvilupp (MDB) ħabbar l-estensjoni tal-Iskema ta’ Garanzija tal-Covid-19 (CGS) sa Ġunju 2022.

Fid-dawl ta’ sinjali ta’ rkurpru ekonomiku u l-iżviluppi marbuta mal-Covid-19, f’Novembru 2021, il-Kummissjoni Ewropea estendiet il-Qafas Temporanju għall-miżuri ta’ għajnuna mill-Istat b’sitt xhur oħra, sat-30 ta’ Ġunju 2022. Dan ippermetta li l-Istati Membri, fejn meħtieġ, jestendu l-iskemi ta’ appoġġ biex jiżguraw li n-negozji milquta mill-kriżi ma jinqatgħux mill-għajnuna meħtieġa. Għal dan l-għan, l-MDB kiteb lill-Kummissjoni Ewropea biex jestendi l-faċilitajiet tal-Covid-19 tal-Bank b’konformità mal-emendi tal-Qafas Temporanju u fid-deċiżjoni tagħha tat-12 ta’ Jannar 2022, il-Kummissjoni approvat it-tiġdid tal-iskemi eżistenti tal-MDB għall-Covid-19 sat-30 ta’ Ġunju 2022.

Fl-aħħar notifika tiegħu, l-MDB talab ukoll lill-Kummissjoni Ewropea biex jibdel uħud mit-termini tas-self tas-CGS, kemm dawk ġodda kif ukoll eżistenti, biex tingħata aktar flessibbiltà fejn meħtieġ. Il-Kummissjoni Ewropea approvat li f’każijiet eċċezzjonali u fid-diskrezzjoni tal-banek kummerċjali, it-terminu tas-self  jista jiġi estiż minn 72 xahar għal massimu ta’ 96 xahar (inkluż il-perjodu tal-moratorju). Fil-każ tal-estensjoni tali tal-maturità, se jkun hemm bidla wkoll fil-miżati tal-garanzija, li jkunu japplikaw b’mod retrospettiv, suġġetti wkoll għal termini u kundizzjonijiet oħra.

L-għan tal-iskemi tal-MDB huwa li jiżguraw il-kontinwità tal-attività ekonomika matul u warail-pandemija, u jaraw li l-intrapriżi milquta mill-Covid-19 jibqa’ jkollhom aċċess għall-faċilitajiet bankarji biex jiffinanzjaw il-kapital tax-xogħol tagħhom. Hekk kif dawn il-faċilitajiet se jibqgħu applikabbli sal-aħħar ta’ Ġunju 2022, in-negozji li jeħtieġu dan il-finanzjament għandhom jagħmlu kuntatt ma’ wieħed mid-disa’ banek kummerċjali akkreditati li qed jaġixxu ta’ intermedjarji ta’ dawn l-iskemi. Aktar minn hekk, l-estensjoni hija applikabbli wkoll għall-Iskema ta’ Sussidju fuq ir-Rata tal-Imgħax tal-Covid-19, skema oħra tal-MDB fejn applikanti jistgħu jgawdu minn għotja sa 2.5% fuq l-imgħax pagabbli fuq l-istess self tas-CGS għall-ewwel sentejn tat-terminu.

L-intervent tal-MDB permezz ta’ dawn l-iskemi kien kruċjali biex jiżgura li n-negozji Maltin jibqgħu għaddejjin minkejja limitazzjonijiet kbar ta’ likwidità minħabba r-restrizzjonijiet imposti waqt il-pandemija. Imnedija f’April 2020, is-CGS tal-MDB hi sostnuta minn garanzija tal-Gvern ta’ €350 miljun u timmobilizza l-likwidità tal-banek kummerċjali fi kreditu fl-ekonomija lokali

Permezz tas-CGS, l-MDB jipprovdi garanzija ta’ 90% fuq self ġdid fuq kapital tax-xogħol mogħti minn banek kummerċjali u dan il-kapital qed jippermetti l-ħolqien ta’ portafoll li jista’ jlaħħaq €777.8 million f’self għan-negozji kollha, irrispettivament mid-daqs jew settur. Spejjeż li jistgħu jiġu korputi jinkludu pagi, kirjiet u kontijiet tal-enerġija fost l-oħrajn.