COVID-19 Guarantee Scheme Available To All Businesses

The €350 million financial aid approved by the EU Commission last week has been entrusted to the Malta Development Bank (MDB) which now launched the COVID-19 Guarantee Scheme (CGS). Fully owned by the Government, the MDB was established in 2017 by the Malta Development Bank Act. Its strategic objective is to offer financing facilities that support productive and viable operations where the market is unable or unwilling to accommodate such activities on its own in whole or part.

The CGS aims at aiding businesses facing cashflow disruptions, as a result of the COVID-19 pandemic, through guarantee loans granted by local commercial banks accredited by the MDB. Essentially, the CGS will enable these banks to leverage the €350 million fund into a total of €777.8 million in new working capital loans to support all types of businesses in Malta.