EU approves €350 million Maltese State aid scheme to support economy

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Tista' taqra bil- Malti.

The European Commission approved the Maltese State aid scheme to support the economy in the context of the coronavirus outbreak under the State aid Temporary Framework to support the economy in the context of the COVID-19 outbreak.

The scheme has an estimated budget of €350 million and will enable public guarantees on loans to support the Maltese economy during the coronavirus outbreak.

Malta notified to the Commission under the Temporary Framework a guarantee scheme for working capital loans granted by commercial banks to support companies affected by the coronavirus outbreak.

The Commission found that the Maltese measure is in line with the conditions set out in the Temporary Framework. In particular: (i) the underlying loan amount per company is linked to cover its liquidity needs for the foreseeable future, (ii) the guarantees will only be provided until the end of this year, (iii) the guarantees are limited to a maximum of six years, and (iv) guarantee fee premiums do not exceed the levels foreseen by the Temporary Framework.

The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State.

The Temporary Framework enables Member States to combine all support measures with each other, except for loans and guarantees for the same loan and exceeding the thresholds foreseen by the Temporary Framework.

The Temporary Framework also enables Member States to combine all support measures granted under the Temporary Framework with existing possibilities to grant de minimis aid company up to €200,000 over three fiscal years.

At the same time, Member States have to commit to avoid undue cumulation of support measures for the same companies to limit support to meet their actual needs.

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