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

The Liquidity Support Guarantee Scheme is targeted towards all impacted business, with specific measures aimed at fuel and oil importers

The Malta Development Bank (MDB) has launched the Liquidity Support Guarantee Scheme (LSGS) which is the second emergency liquidity support measure as part of an aid package in response to the Ukraine crisis. The first measure was in support of grain imports.

The LSGS consists of two measures; one open to all undertakings affected by the crisis (LSGS-A) and the other specific to the fuel and oil importers (LSGS-B).

LSGS-A is aimed at all sectors of the economy and all types of businesses irrespective of size. It will enhance access to bank financing to support undertakings whose cashflow was adversely impacted by the disruptions in supply chains and other pressures brought about by the Ukraine crisis.

LSGS-B is directed towards fuel and oil importers. The objective is that of supporting firms operating in this sector to ensure security of strategic supply in view of developments related to war in Ukraine which have had a significant impact on the energy industry.

Both measures are guaranteed by the MDB and backed by a Government Guarantee covering 90% of each working capital loan under LSGS-A and 80% under LSGS-B. Facilities under both measures benefit from an interest rate subsidy of up to 2.5 percentage points on the outstanding amount of the working capital loan, subject to a minimum interest payment by the borrower of 0.1%. The interest rate subsidy is applicable during the first two years of the loan starting from the date of first disbursement of the loan.

The MDB is making available a total portfolio of €100 million in working capital loans under LSGS-A and a portfolio of €50 million under LSGS-B. The maximum term of loans is up to 6 years and the maximum loan amount is determined on a case-by-case basis based on turnover, energy costs and liquidity needs. Both measures are available until the end of the year.
With the combination of the guarantee and the interest rate subsidy, these measures will be facilitating the availability, accessibility and affordability of cashflow into the real economy during such challenging times.

In order to qualify for these subsidized loans firms are required to demonstrate in a clear manner that their cash flow has been adversely and directly affected by the aggression against Ukraine.

Businesses will be able to apply for the loans with the credit institutions that will soon be accredited by the MDB. The list of credit institutions will soon be made available on the MDB website, along with more details on both measures.


L-MDB iniedi skema ta’ likwidità ta’ emerġenza ta’ €150 miljun bħala għajnuna għan-negozju fid-dawl tal-kriżi Ukrena

L-Iskema ta’ Garanzija b’Ap​poġġ għal-Likwidità hija mmirata lejn in-negozji milquta kollha kif ukoll b’miżuri speċifiċi mmirati għall-importaturi tal-fjuwils u ż-żejt

Il-Bank Malti għall-Iżvilupp (MDB) nieda Skema ta’ Garanzija b’Appoġġ għal-Likwidità (LSGS) li hija t-tieni miżura ta’ emerġenza li tipprovdi sostenn għal-likwidità bħala pakkett ta’ għajnuna b’rispons għall-kriżi Ukrena. L-ewwel miżura kienet waħda ta’ appoġġ għall-importazzjoni tal-qmuħ.

L-LSGS tikkonsisti f’żewġ miżuri: waħda miftuħa għall-intrapriżi kollha milquta mill-kriżi (LSGS-A) u l-oħra speċifika għall-importaturi tal-fjuwil u ż-żejt (LSGS-B).

L-LSGS-A hija mmirata għas-setturi kollha tal-ekonomija u kull tip ta’ negozju irrispettivament mid-daqs tieghu. Din se ssaħħaħ l-aċċess għall-finanzjament bankarju biex jiġu megħjuna dawk in-negozji li l-likwdità tagħhom ġiet milquta ħażin mit-tfixkil fis-sistema tal-provvisti u pressjonijiet oħra li ġabet magħhom il-kriżi fl-Ukrajna.

L-LSGS-B hija mmirata lejn l-importaturi tal-fjuwil u ż-żejt. L-għan tagħha huwa li tappoġġja lill-entitajiet li qed joperaw f’dan is-settur biex jiżguraw is-sigurtà tal-provvista fid-dawl tal-iżviluppi marbuta mal-gwerra fl-Ukrajna li ħalliet impatt notevoli fuq l-industrija tal-enerġija.

Iż-żewġ miżuri huma garantiti mill-MDB u għandhom l-appoġġ ta’ garanzija tal-Gvern li tkopri 90% ta’ kull self fuq working capital taħt l-LSGS-A u 80% taħt l-LSGS-B. Il-faċilitajiet taħt iż-żewġ miżuri jgawdu minn sussidju fuq ir-rata tal-imgħax ta’ 2.5 punti perċentwali fuq l-ammont pendenti tas-self fuq working capital, bil-kundizzjoni li jkun hemm ħlas ta’ imgħax minimu ta’ 0.1% mill-kumpanija li tkun isselfet. Is-sussidju fuq ir-rata tal-imgħax huwa applikabbli matul l-ewwel sentejn tas-self u jibda mid-data tal-ewwel trasferiment tas-self.

L-MDB qed jipprovdi portafoll totali ta’ €100 million f’self fuq working capital taħt l-LSGS-A u portafoll ta’ €50 miljun taħt l-LSGS-B. It-terminu massimu tas-self huwa ta’ sitt snin u l-ammont ta’ self massimu huwa determinat skont il-każ fuq bażi ta’ turnover, spejjeż tal-enerġija u ħtieġa ta’ likwidità. Iż-żewġ miżuri se jkunu disponibbli sal-aħħar tas-sena.

Biex jikkwalifikaw għal dan is-self sussidjat, il-kumpaniji għandhom juru b’mod ċar li l-likwidità tagħhom intlaqtet b’mod negattiv u dirett mill-aggressjoni kontra l-Ukrajna.

In-negozji se jkunu jistgħu japplikaw għas-self mal-istituzzjonijiet ta’ kreditu li se jkunu akkreditati dalwaqt mill-MDB. Il-lista ta’ istituzzjonijiet ta’ kreditu se tkun disponibbli fuq is-sit tal-MDB, flimkien ma’ aktar dettalji dwar iż-żewġ miżuri.

Read More

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​

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

26 July 2019

MDB and KfW Group Establish Cooperation for SME Financing

18 April 2019

The Malta Development Bank publishes its first Annual Report