Since their inception, the MDB’s education-oriented schemes, the Further Studies Made Affordable (FSMA) and FSMA+ have benefitted close to 750 students, with a total support of nearly €33 million. The average loan amount per student was around €40,000, enabling students to cover tuition fees, accommodation expenses, and other education-related costs. The Schemes also helped to reduce the financial burden on families, and incentivised young people to pursue further studies locally and abroad.
The Ministry for European Funds has secured EU financing under the new programming period, along with additional national funds. The Managing Authority (MA) has allocated €1.5 million from these resources for the MDB to launch a new scheme to support students, the MDB StudentAssist.
The MDB StudentAssist is a blended financial instrument, combining two components: a grant in the form of an interest rate subsidy during the moratorium period that makes the instrument more appealing for aspiring students, and a guarantee that enhances student access to bank financing by absorbing a substantial part of the risks for the intermediating bank.
The MDB will again provide a Guarantee covering 80% of individual loans, capped at 20% of the intermediating bank’s portfolio, generating a multiplier of 6.25, meaning that a total portfolio of maximum €6.25 million will be made available.
MDB StudentAssist Financial Instrument Application Details
Financial Intermediaries who are classified as a core domestic bank in the latest Central Bank of Malta definition, are invited to submit a proposal to operate as financial intermediaries of the MDB StudentAssist scheme.
All relevant details and documentation can be found below.