650 companies benefit from loans guaranteed by the Malta Development Bank



The Development Bank of Malta has provided more than € 500 million in loan support since launching its first program at the end of 2018, she said on Wednesday.

These loans were taken out by nearly 650 local businesses, operating across the local economic spectrum, to invest in expanding their operations or to access the working capital needed to ensure their survival during the COVID-19 pandemic. .

Micro, small or medium-sized enterprises represent 91% of all businesses assisted, the bank said in a statement.

He said the loans, which were intermediated through local commercial banks, were made possible through the guarantee programs he offered.

These loans represent some 12.5% ​​of the total outstanding loans granted by the banking system to non-financial corporations in Malta.

Lending to non-financial corporations in Malta grew at an annual rate of 9% in 2020. Without this CDM intervention, these business loans would have contracted by 2.5%, the bank said.

He said the biggest contributor to that impact was the COVID-19 guarantee program, which, thanks to a 350 million euro guarantee backed by the government, the BMD was able to guarantee up to 90% on new working capital loans from commercial banks. businesses facing cash shortages as a result of the pandemic.

In this case, the retail trade, accommodation and catering sectors were the main beneficiaries of the guarantees. This program is still being carried out through nine accredited commercial banks.

Other MDB programs

Other programs managed by MDB include investment in SMEs, family business transfer facility, and further education program made affordable.

The bank said companies that have benefited from its guarantees are responsible for employing more than 40,000 employees, or more than 22% of total private sector employees in Malta.

He said that as the country seeks to emerge from the challenges posed by COVID-19, it is positioning itself to enable the financing of more sustainable and longer-term growth, in line with national and European objectives.

It intends to facilitate investments in green infrastructure projects, innovation and digitization, as well as projects with a social dimension. It will seek to contribute to the achievement of the ambitious goals of the country in various priority areas.

Bank President Josef Bonnici said that the milestone reached in such a short timeframe is testament to the role of BMD in the Maltese economic fabric.

He said new financial instruments will be launched later this year to give new impetus to the economy during the post-pandemic recovery phase.

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