Malta launches two favourable financing schemes to facilitate €180 investment in economy​

The Malta Development Bank (MDB) has launched two new schemes offering favourable financing to businesses which will facilitate investment of up to €180 million in the Maltese economy. The new schemes were announced by Prime Minister Dr Robert Abela during the inauguration of the new building of the Malta Development Bank on the occasion of the fifth anniversary from the establishment of the same Bank.

These schemes will offer advantageous financing rates to Maltese businesses, backing economic regeneration at a time of unprecedented challenges. These schemes will be operated through commercial banks with the support of the Pan-European Guarantee Fund (EGF) of the European Investment Fund.

Two schemes for the different needs of Maltese business

The first scheme, the SME Guarantee Scheme (SGS) will facilitate SME access to bank loans so that these are able to continue to invest in their business. The companies will be able to secure loans of up to €750,000 with the MDB providing a guarantee reaching 80% of this financing. In total, the scheme carries a total of €80 million. Moreover, in collaboration with MCST through the Go-to-Market scheme, part of the SGS portfolio will be specifically allocated to start-ups willing to commercialise their technological and innovative ideas.
The second scheme is the Guaranteed Co-Lending Scheme (GCLS). In this scheme, the MDB will provide directly half of the requested loan, with the commercial banks covering the other half. At the same time, the MDB will cover 60% of the risk carried by the commercial bank. This scheme is targeted to support larger projects exceeding €750,000. This scheme carries a total allocation of €100 million, half by the MDB and the rest by the commercial banks.

Dr Abela said that the objective of Government is to continuously support industry, businesses and jobs. He recalled how during the pandemic the MDB was instrumental in strengthening market confidence through guarantees issued by Government. “As a Government, we put entrepreneurs’ mind at rest that should liquidity be required to cover wages, bills and other expenses, the Malta Development Bank would be there to assist and facilitate”.

MDB Chairman Prof Josef Bonnici explained how the MDB introduced a new form of financial intermediation by addressing gaps in the credit market. “The main objective of this institution is to be of support to the economic and social development of the country by working hand in hand with commercial banks and with other strategic entities to address the main obstacles faced by SMEs when seeking to secure financing”.

He expressed his gratitude and appreciation towards all those persons who throughout the past five years worked to transform the idea of a development bank into a reality and to elevate the MDB as the highly reputable institution it is today.

MDB CEO Paul V. Azzopardi said that in a relatively short period of five years, the MDB reached over 700 businesses which employ some 40,000 persons, and almost 400 students, providing guarantees exceeding €600 million.

Mr Azzopardi added how the financing supported by the MDB currently contributes to around 13% of all outstanding loans towards Maltese businesses. The most visible impact was during the pandemic where business loans increased by 9%, while the lack of MDB support would have resulted in loans to decrease by 2.5%.


L-MDB jniedi żewġ skemi ta’ finanzjament favorevoli li se jiffaċilitaw investiment ta’ 180 miljun ewro fl-ekonomija

Il-Bank Malti għall-Iżvilupp (MDB) nieda żewġ skemi ġodda ta’ finanzjament favorevoli li se jkunu qed jiffacilitaw investiment sa €180 miljun fl-ekonomija Maltija. Dan ħabbru l-Prim Ministru Dr Robert Abela waqt il-ftuħ uffiċjali tal-binja l-ġdida tal-Bank Malti għall-Iżvilupp fil-Floriana fl-okkazzjoni tal-]ames anniversarju mit-twaqqif tal-istess Bank.

Dawn l-iskemi se jagħtu, rati vantaġġjużi ta’ self immirati għan-negozji Maltin, spinta għar-riġenerazzjoni ekonomika quddiem sfidi bla preċedent. Dawn l-iskemi se jitħaddmu minn banek kummercjali bl-appoġġ tal-Fond ta’ Garanzija Pan-Ewropew (EGF) tal-Fond ta’ Investiment Ewropew.

Żewġ skemi għal ħtiġijiet differenti tan-negozji Maltin

L-ewwel skema, l-SME Guarantee Scheme (SGS), se tiffaċilita l-aċċess tal-SMEs għal self bankarju biex ikomplu jinvestu fin-negozju tagħhom. Il-kumpaniji se jkunu jistgħu jisselfu sa €750,000 u l-MDB se jipprovdi garanzija ta’ 80% fuq dan is-self. It-total massimu taht din l-iskema se jkun ta’ €80 miljun. B’kollaborazzjoni sħiħa mal-MCST taħt l-iskema Go-to-Market, parti mill-portafoll tal-SGS se jkun dedikat apposta għal dawk l-istart-ups li jixtiequ jikkummerċjalizzaw l-ideat teknoloġici u innovattivi tagħhom.

It-tieni skema hija l-Guaranteed Co-Lending Scheme (GCLS). F’dan il-każ, l-MDB se jsellef direttament nofs is-self mitlub, u bank kummerċjali n-nofs l-ieħor. Fl-istess ħin, l-MDB ser ikopri 60% mir-riskju fuq il-parti tas-self tal-bank kummerċjali. Din l-iskema hija intiża biex tgħin proġetti akbar li jaqbżu s-€750,000. Din l-iskema se jkollha allokazzjoni totali ta’ €100 miljun, nofshom mill-MDB u nofshom mill-banek kummerċjali.

Dr Abela qal li l-għan tal-Gvern huwa li jkun kontinwament ta’ appoġġ għall-industrija u n-negozju u l-postijiet tax-xogħol. Huwa fakkar kif matul il-pandemija, l-MDB kien strumentali biex isaħħaħ il-kunfidenza fis-suq permezz ta’ garanzija maħruġa mill-Gvern. “Bħala pajjiż, serraħna moħħ l-imprenditur li jaf li jekk għandu bżonn il-likwidità biex jiffinanzja l-pagi, il-kontijiet, u spejjeż oħra, hemm il-Bank Malti tal-Izvilupp li qed jiffaċilita dan”.

Iċ-Chairman tal-Bank, il-Prof Josef Bonnici spjega kif l-MDB introduċa forma ġdida ta’ intermedjazzjoni finanzjarja billi indirizza nuqqasijiet fis-suq tal-kreditu. “L-għan ewlieni ta’ din l-istituzzjoni huwa li jkun ta’ sostenn għall-iżvilupp soċjali u ekonomiku ta’ Malta billi jaħdem id f’id mal-banek kummerċjali u ma’ entitajiet oħra strateġiċi biex jindirizza l-isfidi prinċipali li l-SMEs jaffaċċjaw meta jiġu biex jisselfu”.

Huwa esprima r-ringrazzjament u apprezzament tiegħu għal dawk kollha li fl-aħħar ħames snin ħadmu biex l-idea ta’ bank għall-iżvilupp ssir realtà u l-Bank jieħu l-istatura li għandu llum.

Il-Kap Eżekuttiv tal-Bank, Paul V. Azzopardi, fakkar kif f’perjodu relattivament qasir ta’ ħames snin, l-MDB laħaq ‘il fuq minn 700 intrapriża li jħaddmu mal-40,000 persuna, u kważi 400 student, fejn ta garanziji jew self ta’ ‘l fuq minn €600 miljun.

Is-Sur Azzopardi żied jgħid li s-self appoġġjat mill-MDB bħalissa jikkontribwixxi għal madwar 13% tas-self totali lin-negozju f’Malta. L-akbar impatt kien waqt il-pandemija, fejn is-self lin-negozju kiber b’9%, u li kieku ma kinitx għall-għajnuna tal-MDB, dan kien saħanistra jiċkien b’2.5%.

23 ta’ Novembru 2022

Read More

12 September 2024

MDB and MCAST aligned on Student Development and Career Readiness Initiatives

10 July 2024

APS Bank and Malta Development Bank strengthen collaboration

12 June 2024

InvestEU: EIF – Malta Development Bank agreement to mobilise around €44 million in investments in sustainable and creative projects

06 June 2024

Meeting with the Malta Development Association

07 May 2024

Good governance is a priority for the MDB and the NAO

29 April 2024

€623 million in cumulative financial support from the MDB

16 April 2024

MDB committed to forge stronger ties with the two leading trade related chambers

08 April 2024

MDB hosts Shadow Minister for Finance Graham Bencini

14 March 2024

The Malta Development Bank and the European Investment Bank Group are natural partners to facilitate the island’s economic transformation process

05 March 2024

MDB puts strategic partnership with business associations and trade unions to the fore

27 February 2024

MDB brings together key stakeholders from the commercial banking sector to foster a strategic dialogue and step up collaboration 

03 February 2024

Malta Development Bank – European Court of Auditors Meeting: Upgrading of InvestEU status discussed

30 January 2024

MDB strengthens ability to finance green projects through EIB’s Green Gateway support

16 January 2024

MDB celebrates milestone as loans for further education exceed €20 million

27 December 2023

New Chairman and Directors appointed at the Malta Development Bank

14 November 2023

Malta: €30 million from the EIB to MDB to accelerate the green transition

04 September 2023

Malta Development Bank unveils new website showcasing schemes and opportunities

27 June 2023

Malta Development Bank strengthens support to SMEs with signing of agreements with BOV, HSBC and APS

03 May 2023

MDB plays crucial role in facilitating access to finance and unlocking businesses investment​

08 February 2023

FSMA+: 430 students continue their studies through €15m financing from MDB Schemes​

14 December 2022

Commission approves State aid to support MDB’s remit until December 2027

28 October 2022

Malta Development Bank hosts 30 promotional banks for the ELTI General Assembly 2022​

14 October 2022

Skema ġdida ‘Go-To-Market’ b’aktar minn €1.5M f’fondi kapitali biex jitwettqu proġetti tal-R&I​​

07 July 2022

MDB appoints new Chief Executive Officer​

14 June 2022

MDB launches €150 million emergency liquidity support to businesses in response to the Ukraine crisis​ ​

19 May 2022

MDB launches first support measure in response to the Ukraine crisis​

10 May 2022

MDB publishes its 2021 Annual Report​

30 April 2022

​MDB supporting SMEs through new schemes​

08 February 2022

Additional €15 million for students to further their studies​​

31 January 2022

MDB extends COVID-19 Guarantee Scheme until June 2022​​​

19 October 2021

MDB COVID-19 Guarantee Scheme extended until 31 December 2021​​

24 August 2021

MDB to launch a new EU funded scheme for students​

04 August 2021

MDB’s impact on the ground exceeds half a billion euro since inception​

26 May 2021

MDB’s COVID-19 Guarantee Scheme reaches 40,000 employees​

28 April 2021

The Malta Development Bank publishes its 2020 Annual Report

26 March 2021

MDB and MEA to collaborate further for the benefit of local businesses​​

04 December 2020

BOV Studies Plus+ Fund to increase to €8,250,000 with European Funds​​

23 September 2020

MDB reaches agreement with BOV for delivery of Small Loans Guarantee Scheme

09 August 2020

MDB Facilitates SME Access to Liquidity​

18 July 2020

MDB Provides Lifeline to over 250 Businesses​​

27 April 2020

The Malta Development Bank publishes its second Annual Report​​

22 April 2020

MDB appointed implementing body of COVID-19 Interest Rate Subsidy Scheme​

03 April 2020

MDB launched COVID-19 Guarantee Scheme

26 July 2019

MDB and KfW Group Establish Cooperation for SME Financing

18 April 2019

The Malta Development Bank publishes its first Annual Report