The Malta Development Bank publishes its 2020 Annual Report

​Agile in response, impactful in delivery: MDB supports economic revitalisation in unprecedented times

The Malta Development Bank (MDB) has transformed itself into a key channel for the delivery of economic and financial support measures against the challenges posed by the pandemic, while also delivering incentives intended to revitalise Malta’s economy during the prospective recovery phase.

In its Annual Report for 2020 tabled in Parliament today by the Minister for Finance and Employment Clyde Caruana, the MDB gave details of how hundreds of businesses employing tens of thousands of employees benefitted from the MDB’s support throughout the past year.

Despite originally being founded with the primary objective of addressing the funding gaps of SMEs and infrastructural projects, the Bank quickly responded to the needs of the economy to support companies of all sizes in all economic sectors and to provide a broader range of financing that fit the needs of businesses during such unprecedented circumstances.

The major support measure implemented throughout 2020 was the Covid-19 Guarantee Scheme, through which the MDB facilitated over €400 million in working capital loans through nine commercial banks, supporting more than 500 businesses, accounting for around 30,000 employees.

The Covid-19 Guarantee Scheme provides a guarantee of 90% on all eligible loans and also includes an interest rate subsidy. It has therefore significantly enhanced access to bank financing for working capital, reduced the cost of borrowing, making credit more affordable, and even eliminating the need for collateral for the smallest enterprises.

At the same time, the MDB has also continued to support investment to enable the country achieve a higher level of growth through increased value-added, while promoting social inclusion, a cleaner environment, provide more opportunities for students and improve the quality of life.

Two notable examples of such support measures are the SME Invest scheme, through which the MDB helped SMEs across a number of different economic sectors undertake new investment in 96 projects worth almost €30 million and the Further Studies Made Affordable scheme, which helped close to 200 students further their studies under very favourable conditions.

In parallel to this activity, the Bank continued strengthening its organisational setup, enhancing its technical capacity and knowledge while investing in its human resources to be able to take on more responsibilities in the near future including an important role in mobilising the InvestEU guarantees in Malta over the coming years.

On the publication of the report, MDB Chairman Prof Josef Bonnici expressed his confidence with regard to Malta’s economic recovery: “Malta’s business community has shown remarkable resilience in combatting the dire economic effects of the pandemic, and we can be proud of the role that the Bank has played. There is more to do, and we will definitely not rest on our laurels. We are now looking forward to ensuring that we can continue supporting the economy in a post-COVID-19 recovery period”.

MDB Chief Executive Officer Mr Rene Saliba added that the MDB is already at work to identify how it can deliver a better product to its beneficiaries which serves as strong and innovative stimulus in the upcoming recovery: “While we are very pleased with the results achieved so far, we are reviewing our initiatives, analysing market developments and originating new ideas. Our intention is to support, encourage and facilitate Malta’s rapid resurgence as a vibrant and fast-growing economy in the months ahead”.

The full Annual Report is available on the MDB Website.​


Aġilità u impatt: L-MDB jappoġġja r-riġenerazzjoni ekonomika fi żmien bla preċedent

Matul l-2020, il-Bank Malti għall-Iżvilupp (MDB) ittrasforma lilu nnifsu mezz ewlieni biex iwassal miżuri ta’ appoġġ ekonomiku u finanzjarju kontra l-isfidi li ġabet magħha l-pandemija, filwaqt li jipprovdi wkoll inċentivi li għandhom l-għan li jagħtu ħajja mill-ġdid lill-ekonomija Maltija waqt il-fażi ta’ rkupru.

Fir-Rapport Annwali tiegħu għall-2020, li tqiegħed fuq il-mejda tal-Parlament mill-Ministru tal-Finanzi u x-Xogħol Clyde Caruana, l-MDB ipprovda dettalji dwar kif mijiet ta’ kumpaniji li jħaddmu għexieren ta’ eluf ta’ impjegati bbenefikaw mill-iskemi tal-MDB matul is-sena li għaddiet.

Minkejja li oriġinarjament twaqqaf bl-għan primarju li jindirizza l-bżonnijiet ta’ finanzjament għall-intrapriżi żgħar u proġetti infrastrutturali, il-Bank irrisponda għal ċirkostanzi bla preċedent biex jilqa’ għal ħtiġijiet tal-ekonomija u jgħin kumpaniji ta’ kull daqs filwaqt li jipprovdi firxa usa’ ta’ finanzjament li tilħaq il-bżonnijiet tan-negozji fis-setturi ekonomiċi kollha.

L-akbar miżura ta’ għajnuna implimentata matul l-2020 kienet l-Iskema ta’ Garanzija tal-Covid-19, li permezz tagħha l-MDB iffaċilita aktar minn €400 miljun f’self għal likwidita’ permezz ta’ disa’ banek kummerċjali, li permezz tiegħu appoġġja aktar minn 500 negozju li bejniethom iħaddmu l-fuq minn 30,000 ruħ.

L-Iskema ta’ Garanzija tal-Covid-19 tipprovdi garanzija ta’ 90% fuq is-self eliġibbli kollu u tinkludi sussidju fuq ir-rata tal-imgħax. B’hekk, din saħħet sostanzjalment l-aċċess għall-finanzjament mill-banek, naqqset l-ispejjeż tas-self u f’certi cirkostanzi eliminat il-ħtieġa ta’ garanziji għall-iżgħar intrapriżi.

Fl-istess waqt, l-MDB kompla jappoġġja investiment biex jgħin lill-pajjiż jikseb livell ogħla ta’ tkabbir permezz ta’ valur miżjud akbar, filwaqt li jippromwovi l-inklużjoni soċjali, ambjent aktar nadif, opportunitajiet akbar għall-istudenti u titjib fil-kwalità tal-ħajja.

Żewġ eżempji notevoli ta’ dawn il-miżuri ta’ għajnuna huma l-Iskema SME Invest, li permezz tagħha l-MDB għen bosta intrapriżi f’firxa ta’ setturi ekonomiċi differenti jinvestu f’96 proġett b’valur ta’ €30 miljun u l-Iskema Further Studies Made Affordable, li għenet madwar 200 student ikomplu jistudjaw b’kondizzjonijiet mill-aktar favorevoli.

Fl-istess waqt, il-Bank kompla jsaħħaħ il-qafas organizzattiv tiegħu, itejjeb il-kapaċità teknika tiegħu filwaqt li jinvesti fir-riżorsi umani biex ikun jista’ jerfa’ aktar responsabbiltajiet fil-futur qrib, inkluż li jieħu rwol importanti fil-mobilizzazzjoni tal-garanziji tal-InvestEU f’Malta fis-snin li ġejjin.

Mal-pubblikazzjoni tar-rapport, iċ-Chairman tal-MDB Prof Josef Bonnici esprima l-kunfidenza tieghu fir-rigward tal-irkupru ekonomiku ta’ Malta: “Il-komunità kummerċjali Maltija wriet reżiljenza qawwija fl-isforzi kontra l-effetti ekonomiċi tal-pandemija, u aħna kburin bl-irwol li kellu l-Bank f’dan ir-rigward. Fadal aktar xi jsir u m’aħniex se nistrieħu fuq ir-riżultati miksuba. Issa qed inħarsu ‘l quddiem biex inkomplu nappoġġjaw l-ekonomija fl-irkupru tagħha”.

Il-Kap Eżekuttiv tal-MDB Rene Saliba żied li l-MDB diġà qed jaħdem biex jidentifika kif jista’ joffri prodott aħjar lill-benefiċjarji tiegħu bl-għan li jservi ta’ stimolu innovattiv fl-irkupru li ġej: “Filwaqt li ninsabu sodisfatti bir-riżultati miksuba s’issa, qed nirrevedu l-inizjattivi tagħna, nanalizzaw żviluppi tas-suq u noħorġu b’ideat ġodda. L-għan tagħna hu li nixprunaw, ninkoraġġixxu u niffaċiltaw ir-riġenerazzjoni tal-ekonomija Maltija bħala waħda vibranti u li tikber b’mod mgħaġġel fix-xhur li ġejjin”.

Ir-rapport annwali hu disponibbli fuq is-sit tal-MDB.​

Read More

12 June 2024

InvestEU: EIF – Malta Development Bank agreement to mobilise around €44 million in investments in sustainable and creative projects

06 June 2024

Meeting with the Malta Development Association

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​

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