MDB launched the COVID-19 Guarantee Scheme aimed at guaranteeing loans granted by banks to meet new working capital requirements of businesses.
On 3 April, the Malta Development Bank (MDB) launched the MDB COVID-19 Guarantee Scheme. The purpose is of guaranteeing loans granted by commercial banks in Malta to meet new working capital requirements of businesses facing cashflow disruptions due to the COVID-19 pandemic. The Scheme has been approved by the European Commission under the Temporary Framework for State aid measures to support the economy. The Scheme will enable commercial banks, accredited by the MDB, to leverage the €350 million guarantee fund into €777.8 million in new working capital loans. Interested credit institutions need to submit an Expression of Interest to participate in the Scheme and eventually enter into a Risk Sharing Agreement and Service Level Agreement with MDB.
The eligible enterprises are small and medium-sized enterprises (SMEs) employing up to 250 employees and large enterprises employing more than 250 employees.
Hereunder are the loan features:
Eligible costs under these loans mainly include, but are not limited to, salaries, leases, utilities, working capital creditor balances, creditor balances for investment expenditure contracted for before the approval of the Scheme, acquisition of material and stock, maintenance costs and expenses directly related to contracts which were cancelled or postponed because of the COVID-19 outbreak excluding penalties and other liabilities incurred due to non-performance of contracts. The Scheme shall not cover restructuring or rescheduling of existing facilities.
Should you have any queries or wish to discuss further, please send an email to email@example.com.
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 Malta civil partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.