MDB to launch a new EU funded scheme for students​

Pre-announcement – Launch of the FSMA+

Following the success of the Further Studies Made Affordable (FSMA) scheme, through which to-date 219 students were able to undertake specialised studies in various disciplines, the Managing Authority (MA) has secured EU financing which will be directed to the Malta Development Bank (MDB) to implement a new scheme, the FSMA+. The Scheme will be funded from the European Social Fund (ESF) and the European Social Fund Plus (ESF+). ​

A new call for service will shortly be issued by the MDB, inviting commercial banks to submit a proposal as financial intermediaries of the FSMA+ scheme.

The new scheme will build on the success of its predecessor which the MDB, in collaboration with the Managing Authority of EU funds, had launched in October 2019.

Thanks to the ESF and the ESF+ Programme, up to €5 million will be dedicated to support the FSMA+ scheme. Close to half of this amount will be in the form of a grant subsidising the interest payments during the moratorium period. The MDB will again provide a First Loss Guarantee covering 80% of individual loans, capped at 25% of the commercial bank’s portfolio, generating a multiplier of 5, meaning that a total portfolio of circa €15 million will be made available.

Like its predecessor, this scheme will allow the provision of affordable loans for students, with the FSMA+ allowing loans of up to €100,000 for a duration of up to 15 years, including a maximum moratorium period of 5 years. Similarly, students will once again benefit from a subsidy on all the interest payments during the moratorium period which is being financed through a grant, and an attractive interest rate thereafter. Due to the guarantee of 80% provided by the MDB, no collateral or up-front contribution will be requested from the beneficiaries.

Prof Joseph Bonnici, Chairman of the MDB said: “We are pleased to have secured the necessary funding to build on the success of the FSMA into a new scheme. By enhancing access to student loans, the MDB will be supporting the upskilling of Malta’s youths and labour force allowing them to move on to better jobs and strengthening Malta’s human capital”.


​Il- Bank Malti ta’ Żvilupp se jniedi skema ġdida għall-istudenti finanzjata mill-MDB Avviż minn qabel – Tnedija ta’ FSMA+

Wara s-suċċess tal-iskema Further Studies Made Affordable (FSMA), li permezz tagħha sal-lum 219 student setgħu jkomplu bi studji speċjalizzati f’dixxiplini differenti, l-Awtorità Maniġerjali rnexxilha tassigura fondi mill-UE li se jingħataw lill-Bank Malti għall-Iżvilupp (MDB) biex jimplimenta skema ġdida, l-FSMA+. L-Iskema se tkun finanzjata mill-Fond Soċjali Ewropew (ESF) u l-Fond Soċjali Ewropew Plus (ESF+).

Permezz ta’ sejħa għas-servizz li se tinħareġ fil-futur qarib mill-MDB, il-Bank se jkun qed jistieden lill-banek kummerċjali biex jissottomettu proposta bħala intermedjarji finanzjarji għall-iskema FSMA+​.

L-iskema l-ġdida se tibni fuq is-suċċess tal-predeċessur tagħha li permezz tagħha, l-MDB, b’kollaborazzjoni mal-Awtorità Maniġerjali tal-fondi tal-UE, kien nieda f’Ottubru 2019.

Grazzi għall-Programmi ESF u ESF+, sa €5 miljuni se jkunu dedikati għall-iskema FSMA+. Kważi nofs dan l-ammont se jmorru għal għotja li tissussidja l-pagamenti tal-imgħax waqt il-perjodu tal-moratorju. L-MDB se jkun qed jerġa jipprovdi garanzija (first loss guarantee) li tkopri 80% tas-self individwali, sa massimu ta’ 25% tal-portafoll tal-bank kummerċjali. Dan ifisser li l-portafoll ta’self totali li se jkun disponibbli taħt din l-iskema ġdida se jikber għal kważi €15-il miljun.

Bħall-iskema ta’ qabilha, l-FSMA+ se tippermetti l-għoti ta’ self affordabbli għall-istudenti, li jista’ jlaħħaq sa €100,000 għal massimu ta’ 15-il sena, inkluż moratorju massimu ta’ ħames snin. Bl-istess mod l-istudenti se jerġgħu jgawdu minn sussidju fuq il-pagamenti kollha tal-imgħax li se jkun qed jiġi finanzjat permezz ta’ għotja, u rata tal-imgħax attraenti minn hemm’il quddiem. Minħabba l-garanzija ta’ 80% ipprovduta mill-MDB, il-benefiċjarji mhux se jintalbu ebda kontribuzzjoni bil-quddiem jew li jagħmlu tajjeb għas-self b’assi oħra.

Prof Josef Bonnici, Chairman tal-MDB qal: “Ninsabu kuntenti ferm li ksibna l-fondi meħtieġa biex nibnu fuq is-suċċess tal-FSMA permezz ta’ skema ġdida. Billi nsaħħu l-aċċess għas-self għall-istudenti se nkunu qed ngħinu t-tisħiħ tal-kapaċitajiet tal-ħaddiema ta’ pajjiżna biex dawn ikunu jistgħu jfittxu impjiegi aħjar, u b’hekk inkunu qed insaħħu l-kapital uman ta’ pajjiżna”.

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