The Bank of Valletta and the EIB Group (EIB and EIF) have renewed their partnership to support the business needs of small and medium-sized enterprises (SMEs) in Malta. Under this new agreement, the Bank will provide an additional € 28 million to Maltese SMEs on favorable and long-term terms over the next two years. The agreement is supported by the European Union’s “SME Initiative”, which is based on EU Structural and Investment Funds (ESIF) made available by the Government of Malta, and implemented in conjunction with funds from the H2020 program as well as EIF itself. resources.

Favorable loan conditions are achieved through a structured finance project defined as a “risk transfer”, implemented by combining funds managed at national level with resources from the EU program and the resources of the EU Group. -BEI. The SME Initiative agreement is created in the form of an unlimited guarantee operation on a new loan portfolio to be originated by the Bank of Valletta, using these funds to cover the first loss. of the portfolio.

The transaction confirms the long-standing relationship and cooperation between the EIB Group and the Bank of Valletta and will help the Bank to support Maltese SMEs with a product that will provide financing on advantageous terms, with the aim of to help entrepreneurs overcome the economic crisis caused by the COVID-19 pandemic. .

Commenting on the increase in the transaction with the Bank of Valletta, EIF Chief Executive Alain Godard said: “I am pleased with the very positive results of the SME Initiative in Malta. The Bank of Valletta has already managed more than € 70 million in SME financing to help companies over the last six years. I am convinced that additional funding will be instrumental in supporting more jobs and growth, effect of the COVID-19 pandemic by pooling European Structural and Investment Funds, EU Horizon 2020 and EIB Group resources. “

EIB Vice-President Gelsomina Vigliotti said: “The EIB Group is fully committed to supporting the launch of the SME Initiative in Malta, a major program in the context of the current COVID pandemic. “With today’s signing, additional long-term financing in Malta will be available to Maltese SMEs, which will contribute to the promotion of the country’s economic recovery.”

Parliamentary Secretary for European Funds within the office of Prime Minister Dr Stefan Zrinzo Azzopardi stated: “The decision to allocate additional funds to the SME Initiative financial instrument further confirms the Government’s commitment to Especially in the current circumstances, the effort being made to ensure a continuous flow of support to businesses is imperative to help them mitigate the continuing impact of the pandemic on Maltese SMEs. is that these additional funds will serve as an opportunity for our businesses not only to recover but also to invest and grow, even in these challenging times. ”

Bank of Valletta Chief Business Banking Officer Albert Frendo said: “This is another step in our journey with the EIF in positioning the Bank of Valletta as the Maltese SME bank. Aware of the challenges it is facing. facing the SME community, this challenge of raising funds has allowed the Bank of Valletta to present a more competitive bid with the aim of helping Maltese SMEs invest as a means of strengthening their competitiveness in a green economy. after COVID. “