Watch: Government to subsidise up to 2.5% on business interest rates

Tista' taqra bil- Malti.

Businesses which require loans due to the coronavirus outbreak will benefit from a 2.5% subsidy on interest rates.

The new measure was announced by Parliamentary Secretary for Financial Services Clayton Bartolo who addressed an online press conference with Finance Minister Edward Scicluna on Thursday afternoon.

The new measure is aimed at assisting businesses which have been negatively impacted by the outbreak.

The global coronavirus pandemic has caused market disruptions around the world with many economists likening its effects to the Great Depression. States scrambled to stabilize their markets and mitigate the negative impact it has caused on the domestic economy.

The Maltese government has already issued three financial packages aimed at helping businesses especially the hardest hit sector due to the outbreak. The latest set of measures is aimed at assisting businesses address liquidity difficulties.

During the press conference, Bartolo mentioned outlined measures which have already been announced. Primarily the MDB COVID-19 Guarantee Scheme which was launched by the Malta Development Bank and is key component of the wider package of the Government’s COVID-19 Response Support Programme as well as the six-month moratorium on repayments on capital and interest for borrowers who have been negatively affected by COVID-19.

Explaining the new measure, Bartolo said that if a client would be charged 2.5% interest rate than the government will cover 2.4% with the client only paying 0.1% on interest. Those who would be charged 3.5% interest rate, the government will cover up to a maximum of 2.5%. Businesses should get in touch with their banks, Bartolo said in order to benefit from this scheme. The government will continue to subsidize with the interest rates for a period of two years.

Finance Minister Edward Scicluna highlighted that the country was moving on two binaries that of public health and the economy. He referred to the IMF’s report on Malta. Scicluna remarked that the country was quick to take the necessary measures as soon as possible in order to safeguard jobs.

On Thursday 13 new coronavirus case were reported in Malta. The number of active cases stands at 327 after 38 patients successfully recovered.

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