No details sent to banks on how latest measure to assist businesses works

Miguela Xuereb

The Malta Bankers Association (MBA) welcomes the measure recently launched by the government towards businesses which require loans due to the coronavirus outbreak. However, the association said that the specific details, terms and modality of the announced scheme have not yet been communicated to its members.

The MBA said that in the meantime banks have been receiving numerous queries about how the scheme will operate.

On Thursday Parliamentary Secretary for Financial Services, Clayton Bartolo and Finance Minister Edward Scicluna announced that businesses which require loans due to the coronavirus outbreak will benefit from a 2.5% subsidy on interest rates.

The Bankers Association said that once they receive the information on how the measure will operate the MBA and its members will provide further updates as necessary.

During the press conference held by Bartolo and Scicluna, it was explained 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 a 3.5% interest rate, the government will cover up to a maximum of 2.5%.

They also said that businesses should get in touch with their banks in order to benefit from this scheme. The government will continue to subsidize with the interest rates for a period of two years.

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