New SME scheme announced in Malta

A new SME initiative has been launched in Malta aimed at assisting and benefitting more than 800 companies between now and 2020.

The scheme was launched by Deputy Minister Louis Grech and Parliamentary Secretary Dr Ian Borg and will have access to over €60m in funding. Malta is contributing an amount of €15m from its European Structural and Investment Funds (ESIF) to this new EU initiative. The money contributed by the government will be leveraged with commercial lending through a risk-sharing mechanism. This will result in more SMEs benefitting from European resources on advantageous terms, such as reduced interest rates and improved collateral requirements.

Speaking about the initiative, Borg said: “This financial instrument will open up further opportunities for investment in SMEs. This initiative will play a crucial role in the growth of the Maltese economy as an important source of employment.”

The SME Initiative entails an innovative change in the use of ESIF, combining the latter with the EU central budget, i.e. resources from Horizon 2020, and European Investment Bank group funds.

Adding his thoughts, European Investment Fund (EIF) chief Executive Pier Luigi Gilibert said: “I am extremely pleased that EIF and Malta are implementing this important initiative, which will generate more than €60m of SME financing over the coming years. The combination of ESIF, EU, Horizon 2020 and EIB Group resources allows EIF to provide risk-sharing and capital relief to financial intermediaries for the ultimate benefit of SMEs.”