MDB and KfW Group Establish Cooperation for SME Financing

​On 24 June 2019, the Malta Development Bank (MDB) signed a EUR 45 million global loan agreement with the KfW Group. MDB will use the funds to promote SME (Small and Medium-sized Enterprises) finance in Malta with special emphasis on SME investments. SMEs in Malta will benefit from the favourable financing conditions offered by KfW and MDB. This facility aims to address the market gap in access to finance for SMEs. MDB will mobilise the funding by direct loan agreements with SMEs in conjunction with domestic banks that will be participating in a new scheme that the MDB plans to launch soon, comprising co-financing and a partial guarantee. This loan agreement will contribute to deepen and extend the existing business relationship between KfW and MDB which started during the bank´s incorporation process. The global loan with KfW is MDB´s first funding transaction. KfW was set up in 1948 by the German Government and is one of the world’s leading promotional banks with assets of almost €500 billion.

Dr Ingrid Hengster, member of KfW’s Executive Board says: “Malta’s economy has grown dynamically clearly above EU average growth rates in the past few years, not least due to the important role of the country’s small and medium-sized companies. Their share in Malta’s business economy value added is about 80%, thus much higher than in most of the other EU countries. I’m delighted to deepen the partnership between KfW and MDB with this global loan, and I’m confident that it will contribute to strengthen both the country’s prospering economy and the German-Maltese business relationships.”

Prof. Josef Bonnici, Chairman of Malta Development Bank noted that “SMEs are one of the top priorities of the MDB as they ensure growth, innovation, jobs and the long-term competitiveness of the Maltese economy. This global loan will enable MDB to fulfil its mandate by providing the necessary support to SMEs in Malta to overcome the persistent difficulties in financing new investment. We are convinced that this bilateral operation provides an excellent basis for further collaboration between KfW and MDB in the future.”


Il-Bank Malti ta’ Żvilupp u il-KfW Grupp jistabilixxu kooperazzjoni kummerċjali għall-finanzjament tal-SMEs f’Malta

Fl- 24 ta’ Ġunju 2019, il-Bank Malti ta’ Żvilupp (MDB) iffirma ftehim ta’ self globali mal-KfW Grupp. L- MDB se juża dawn il-fondi sabiex jippromovi u jiffaċilita l-aċċess għall-finanzjament ta’ investiment minn intrapriżi ta’ daqs żgħir u medju (SMEs). SMEs f’Malta se jibbenefikaw minn kundizzjonijiet finanzjarji favorevoli li qed joffru il-KfW u l-MDB. L-oġġettiv ta’ din il-faċilita’ hu li tindirizza nuqqasijiet fis-suq tas-self lill-SMEs. L-MDB se jimmobiliżża dawn il-fondi f’self dirett lil SMEs b’kollaborazzjoni ma’ banek kummerċjali li se jkunu qed jipparteċipaw fi skema li l-MDB ser ikun qiegħed iniedi fix-xhur li ġejjin, u li se tinvolvi finanzjament konġunt mal-banek kif ukoll garanzija parzjali. B’dan il-ftehim ta’ self, l-MDB u l-KfW qed ikomplu jibnu fuq relazzjoni kummerċjali li bdiet bil-ħidma inizzjali għat-twaqqif tal-MDB. Il-KfW huwa bank li ġie mwaqqaf fl-1948 mill-Gvern Germaniż u huwa fost l-akbar banek promozzjonali fid-dinja b’assi li jammontaw għal kważi €500 biljun.

Dr Ingrid Hengster, membru tal-Bord Eżekuttiv tal-KfW tgħid: “Fl-aħħar snin, l-ekonomija Maltija kibret b’mod dinamiku u b’rata ogħla minn dik tal-medja tal-EU, u dan b’mod partikolari bil-kontribut tal-SMEs. L-SMEs f’Malta jiġġeneraw madwar 80% tal-valur miżjud tal-ekonomija kummerċjali, rata ħafna iktar għolja minn dik ta’ pajjiżi oħra. Huwa b’sodisfazzjon li b’dan il-ftehim, ir-relazzjoni bejn il-KfW u l-MDB se tkompli tissaħħaħ, u ninsab kunfidenti li se tkun ta’ kontribut għat-tisħiħ kemm tal-ekonomija Maltija kif ukoll tar-relazzjoni kummerċjali bejn Malta u l-Ġermanja.
Prof. Josef Bonnici, Chairman tal-MDB sostna li “l-SMEs huma priorita’ għall-MDB għaliex jassikuraw tkabbir, innovazzjoni, impjiegi u kompetittivita’ tal-ekonomija Maltija. Dan il-ftehim ta’ self se jkun strumentali fit-twettiq tal-mandat tal-MDB billi jipprovdi is-sostenn neċessarju lill-SMEs f’Malta biex jgħelbu l-isfidi li jaffaċċjaw meta jiġu biex jiffinanzjaw l-investiment tagħhom. Ninsabu konvinti li dan il-ftehim se jkun bażi eċċellenti għal aktar kollaborazzjoni bejn il-KfW u l-MDB fiż-żmien li ġej.

Read More

07 May 2024

Good governance is a priority for the MDB and the NAO

29 April 2024

€623 million in cumulative financial support from the MDB

16 April 2024

MDB committed to forge stronger ties with the two leading trade related chambers

08 April 2024

MDB hosts Shadow Minister for Finance Graham Bencini

14 March 2024

The Malta Development Bank and the European Investment Bank Group are natural partners to facilitate the island’s economic transformation process

05 March 2024

MDB puts strategic partnership with business associations and trade unions to the fore

27 February 2024

MDB brings together key stakeholders from the commercial banking sector to foster a strategic dialogue and step up collaboration 

03 February 2024

Malta Development Bank – European Court of Auditors Meeting: Upgrading of InvestEU status discussed

30 January 2024

MDB strengthens ability to finance green projects through EIB’s Green Gateway support

16 January 2024

MDB celebrates milestone as loans for further education exceed €20 million

27 December 2023

New Chairman and Directors appointed at the Malta Development Bank

14 November 2023

Malta: €30 million from the EIB to MDB to accelerate the green transition

04 September 2023

Malta Development Bank unveils new website showcasing schemes and opportunities

27 June 2023

Malta Development Bank strengthens support to SMEs with signing of agreements with BOV, HSBC and APS

03 May 2023

MDB plays crucial role in facilitating access to finance and unlocking businesses investment​

08 February 2023

FSMA+: 430 students continue their studies through €15m financing from MDB Schemes​

14 December 2022

Commission approves State aid to support MDB’s remit until December 2027

23 November 2022

Malta launches two favourable financing schemes to facilitate €180 investment in economy​

28 October 2022

Malta Development Bank hosts 30 promotional banks for the ELTI General Assembly 2022​

14 October 2022

Skema ġdida ‘Go-To-Market’ b’aktar minn €1.5M f’fondi kapitali biex jitwettqu proġetti tal-R&I​​

07 July 2022

MDB appoints new Chief Executive Officer​

14 June 2022

MDB launches €150 million emergency liquidity support to businesses in response to the Ukraine crisis​ ​

19 May 2022

MDB launches first support measure in response to the Ukraine crisis​

10 May 2022

MDB publishes its 2021 Annual Report​

30 April 2022

​MDB supporting SMEs through new schemes​

08 February 2022

Additional €15 million for students to further their studies​​

31 January 2022

MDB extends COVID-19 Guarantee Scheme until June 2022​​​

19 October 2021

MDB COVID-19 Guarantee Scheme extended until 31 December 2021​​

24 August 2021

MDB to launch a new EU funded scheme for students​

04 August 2021

MDB’s impact on the ground exceeds half a billion euro since inception​

26 May 2021

MDB’s COVID-19 Guarantee Scheme reaches 40,000 employees​

28 April 2021

The Malta Development Bank publishes its 2020 Annual Report

26 March 2021

MDB and MEA to collaborate further for the benefit of local businesses​​

04 December 2020

BOV Studies Plus+ Fund to increase to €8,250,000 with European Funds​​

23 September 2020

MDB reaches agreement with BOV for delivery of Small Loans Guarantee Scheme

09 August 2020

MDB Facilitates SME Access to Liquidity​

18 July 2020

MDB Provides Lifeline to over 250 Businesses​​

27 April 2020

The Malta Development Bank publishes its second Annual Report​​

22 April 2020

MDB appointed implementing body of COVID-19 Interest Rate Subsidy Scheme​

03 April 2020

MDB launched COVID-19 Guarantee Scheme

18 April 2019

The Malta Development Bank publishes its first Annual Report