Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) launched a significant initiative in Malta aimed at enhancing the competitiveness of small and medium-sized enterprises (SMEs) through a new financing facility. The specific challenge faced by SMEs in Malta was limited access to favorable financing conditions, which hindered their growth and competitiveness. To address this, the EIF deployed 10.5 million from Maltas European Regional Development Fund (ERDF) and an additional 19.5 million from its own resources to provide a 30 million guarantee. This initiative is expected to unlock a total of 60 million in investments, benefiting over 140 companies by offering improved loan terms, including lower interest rates, reduced collateral requirements, and decreased down-payment requirements.
The tailored solution provided by the EIF involved a partnership with Bank of Valletta, which was selected to implement this financing scheme. The SME Competitiveness Guarantee product was specifically designed to restore blocked lending channels and improve access to finance for Maltese businesses. This initiative not only aims to stimulate immediate economic activity by facilitating loans but also plays a crucial role in supporting the long-term growth and resilience of SMEs in Malta. The collaboration is expected to significantly enhance the financial backing available to local businesses, enabling them to thrive and innovate in a competitive market.
As a result of this initiative, the Maltese government anticipates that the partnership will lead to a total investment of up to 86 million, with the 60 million generated through Bank of Valletta directly supporting the local economy. This strategic approach is positioned to empower entrepreneurs, drive innovation, and create jobs, thereby ensuring Malta's economic growth and sustainability in the future.