Malta Development Bank provides lifeline to 251 businesses safeguarding more than 15,000 jobs through Covid-19 Guarantee Scheme
By the end of June, more than 250 businesses and the livelihoods of more than 15,000 employees and their families were provided with a crucial lifeline of €200 million in additional liquidity from local banks backed by the Malta Development Bank COVID-19 Guarantee Scheme.
The MDB Guarantee Scheme covers 90% of each working capital loan to businesses whose cashflow has been impacted by the COVID-19 outbreak. It is therefore providing the necessary backing so that commercial banks can provide otherwise-unavailable working capital loans with reduced collateral requirements, highly subsidised interest rates on loans, as well as a moratorium on repayment of both capital and interest.
The MDB scheme, through these efforts, allowed these businesses, regardless of their size and their economic sector, to obtain the necessary liquidity to cover salaries, rental payments, utility bills and other payments of an immediate nature.
At the height of the coronavirus pandemic, Government allocated a guarantee fund of €350 million to MDB to develop, administer and implement the scheme through the intermediation of the local commercial banks. Nine local commercial banks have been accredited to intermediate this scheme which has the potential to generate an overall loan portfolio of almost €789 million.
The MDB Covid-19 Guarantee scheme is one of the major pillars in the overall economic recovery package enacted by Government. The European Commission praised the package as a significant contributor which will allow the Maltese economy to soften the blow in 2020 and recover strongly by 2021.
The Chairman of the Board of Directors of the Malta Development Bank, Prof Josef Bonnici commented: “Despite Malta’s success in dealing with the health aspect of the coronavirus, the impact of the pandemic on our businesses was inevitable. Through the guarantee schemes managed by the MDB, we have ensured that business owners are supported in their efforts to be resilient through these challenging times while most importantly safeguarding the jobs these companies support. At the same time, we are also making it easier for the banks to continue providing new loans which will be crucial in supporting the economy not only to survive but to regenerate itself and deliver growth in the months ahead”.
Il-Bank Malti ta’ Żvilupp jipprovdi għajnuna vitali lil 251 negozju u jipproteġi aktar minn 15,000 impjieg permezz tal-Iskema ta’ Garanziji tal-Covid-19
Aktar minn 250 negozju u l-għajxien ta’ aktar minn 15,000 impjegat u l-familji tagħhom kienu mħarsa grazzi għall-Iskema ta’ Garanziji tal-Covid-19 imħaddma mill-Bank Malti ta’ Żvilupp (MDB). Din l-iskema ppermettiet li aktar minn €200 miljun f’likwidità jgħaddu għand dawn in-negozji Maltin u Għawdxin.
L-MDB qed jipprovdi l-appoġġ neċessarju biex banek kummerċjali jkunu jistgħu jipprovdu self fuq working capital lis-sidien ta’ negozji, jitolbuhom inqas garanziji, joffrulhom rati tal-imgħax mill-aktar sussidjati u jipprovdu moratorju fuq il-ħlas lura ta’ kapital u imgħax.
L-MDB, permezz ta’ din l-iskema, qed jippermetti li dawn in-negozji, irrispettivament mid-daqs tagħhom u s-settur ekonomiku li joperaw fih, ikollhom aċċess għal-likwidità neċessarja biex iħallsu s-salarji, kirjiet, kontijiet tad-dawl u pagamenti oħra ta’ natura immedjata.
Fl-eqqel tal-pandemija tal-coronavirus, il-Gvern alloka fond ta’ garanzija ta’ €350 miljun lill-MDB biex dan jiżviluppa, jamministra u jimplimenta l-iskema permezz tal-intermedjazzjoni tal-banek kummerċjali lokali. Disa’ banek liċenzjati lokalment qed jipparteċipaw bħala intermedjarji f’din l-iskema.
L-Iskema ta’ Garanzija tal-Covid-19 hija pilastru importanti fil-pakkett ta’ rkupru ekonomiku għal pajjiżna u li l-Kummissjoni Ewropea faħħret dan il-pakkett bħala kontributur importanti li għandu jippermetti li jitnaqqas l-impatt ekonomiku fuq Malta tul din is-sena u biex pajjiżna jkun jista’ jirkupra b’mod b’saħħtu mal-2021.
Iċ-Chairman tal-Bord tad-Diretturi tal-Bank Malti ta’ Żvilupp, il-Professur Josef Bonnici kkummenta: “Minkejja s-suċċess ta’ pajjiżna fil-mod ta’ kif ikkontrolla din l-imxija tal-coronavirus, l-impatt fuq in-negozji tagħna kien inevitabbli. Permezz ta’ dawn l-iskemi mmexxija mill-MDB, żgurajna li s-sidien ta’ negozju jkunu megħjuna fl-isforzi tagħhom biex jgħaddu minn dawn iż-żminijiet diffiċli, jerġgħu jiġu fuq saqajhom u nipproteġu magħhom l-impjiegi li huma jipprovdu. Fl-istess ħin, qed nagħmluha aktar faċli biex il-banek ikunu jistgħu jipprovdu self ġdid li se jkun kruċjali biex l-ekonomija tirriġenera lilha nfisha u twassal għal tkabbir ġdid fix-xhur li ġejjin.”