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ARTICLE · 23 MAY 2020

Interest Rate Subsidy Of Up To 2.5% Announced

KPMG Malta
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Government announced that it will be financing up to 2.5% of the interest rates on bank loans taken out by businesses hit by the COVID19 pandemic.

MaltaFinance and Banking
KPMG Malta
KPMG Malta
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During a press conference held on Thursday, 16 April by the Minister of Finance and the Parliamentary Secretary for Financial Services and Digital Economy, another measure has been announced to support businesses impacted by the COVID19 pandemic - an interest rate subsidy of up to 2.5% on bank loans. It appears that the subsidy is subject to the payment of a minimum rate of 0.1%. The Parliamentary Secretary emphasised that the subsidy is not aimed at financing investments like the purchase of property but is aimed at supporting businesses to keep operating during COVID times and eventually recover. Businesses wishing to avail themselves of the subsidised facilities should contact any of the participating banks (BOV, HSBC, BNF Bank, APS, MeDirect, Lombard Bank, Izola Bank, FCM Bank). Applications close in June 2020 and are subject to the eligibility criteria of the banks. We expect more details to be published on this measure in the coming days.

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