Malta Development Bank provides a lifeline to 251 businesses through COVID-19 Scheme

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Tista' taqra bil- Malti.

By the end of June, 251 businesses and the livelihoods of more than 15,000 employees and their families were provided with a crucial lifeline of €200 million in additional liquidity from local banks backed by the Malta Development Bank COVID-19 Guarantee Scheme.

In a statement published by MDB on Saturday, the bank explained that the Guarantee Scheme covers 90% of each working capital loan to businesses whose cash flow has been impacted by the COVID-19 outbreak.

It is, therefore, providing the necessary backing so that commercial banks can provide otherwise-unavailable working capital loans with reduced collateral requirements, highly subsidised interest rates on loans, as well as a moratorium on repayment of both capital and interest, said MDB.

The MDB scheme allowed businesses, regardless of their size and their economic sector, to obtain the necessary liquidity to cover salaries, rental payments, utility bills and other payments of an immediate nature.

The government had allocated a guarantee fund of €350 million to MDB to develop, administer and implement the scheme through the intermediation of the local commercial banks. It was explained how nine local commercial banks have been accredited to intermediate this scheme which has the potential to generate an overall loan portfolio of almost €789 million.

The Chairman of the Board of Directors of the Malta Development Bank, Prof Josef Bonnici said that despite Malta’s success in dealing with the health aspect of the coronavirus, the impact of the pandemic on businesses was inevitable and through the guarantee schemes it has been ensured that business owners are supported in their efforts to be resilient while most importantly safeguarding the jobs these companies support.