Investment & Fund Management
The EIB
Full Credential Description
The EIB Group (EIB and EIF) signed an agreement with the Government of Malta and the European Commission to enhance financing under the SME Initiative in Malta. The initial agreement had already facilitated approximately EUR 60 million in new SME financing within less than three years through local banks, Bank of Valletta and BNF Bank. Due to the successful uptake of this initial funding, the Maltese authorities, alongside the EIB Group and the European Commission, decided to inject an additional EUR 28 million into the initiative. This increase is expected to expand the total SME financing to around EUR 90 million, allowing more SMEs to benefit from European resources under favorable terms, including reduced interest rates and improved collateral requirements.
Malta's contribution to the initiative rose from EUR 15 million to EUR 22 million, which will be leveraged with commercial lending through a risk-sharing mechanism. The SME Initiative combines European Structural and Investment Funds, the Horizon 2020 programme, and EIB group funds to support local businesses. The EIF Chief Executive noted that the additional finance would be crucial in supporting job creation and growth among Maltese SMEs. The EIB Group anticipates that around 300 additional SMEs will receive long-term financing under this enhanced scheme, delivering lasting benefits to the Maltese business landscape.