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Interest rate subsidy of up to 2.5% announced

Interest rate subsidy of up to 2.5% announced

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.

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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.

This interest rate subsidy is an additional measure to and can be applied in conjunction with the COVID19 Guarantee Scheme launched by the Malta Development Bank on 3 April providing for a 6 month moratorium, extendible to 1 year, on loans provided by accredited banks

Should you have any queries or wish to discuss further, please send an email to covid@kpmg.com.mt.

Interest rate subsidy of up to 2.5% announced

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

© 2020 KPMG, a Maltese civil partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.


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