€23 million sanctioned through Bank of Valletta’s Jeremie in 12 months

Over 230 Maltese businesses have benefited from €23 million loans sanctioned through the BOV Jeremie Financing Package to various SMEs including Micro Enterprises, resulting in a total investment amount of €35.5 million.

All this was achieved just over a year since Bank of Valletta was appointed by the EIF as the sole Maltese financial intermediary for the management of the Jeremie Initiative (Joint European Resources for Micro to Medium Enterprises)

Through its dynamic promotion of this EU supported financial engineering instrument, the bank successfully allocated nearly half of the total available budget since its launch in April 2011.

The BOV Jeremie financing package, which amounts to €51 million, is intended to support Maltese SMEs for their capital expenditure requirements. All types of SMEs can benefit from the scheme including micro-enterprises. It is a fact that nearly 80% of facilities have been granted to micro enterprises which employ fewer than 10 employees.

Jeremie is a joint initiative launched by the European Commission and the European Investment Bank group to improve access to finance for SMEs in the EU within the Structural Funds framework for the period 2007-2013.

Richard Pelly, chief executive of the European Investment Fund stated that: "The Jeremie initiative in Malta is marking its first anniversary and the European Investment Fund is very pleased with the support given to local SMEs. Based on the positive results achieved to date where 230 SMEs have already benefited from this scheme, the EIF looks forward to continue its fruitful cooperation with Bank of Valletta to benefit entrepreneurship and growth in Malta."

Charles Borg, CEO of Bank of Valletta, said the bank was very encouraged with the results registered to date.

"As a result of this we are further intensifying our efforts to assist Malta-based enterprises with the establishment of an EU Business Development Department and the opening up of a Representative Office in the Belgian capital Brussels. The objectives of these two initiatives are to further assist our enterprises tap into both Malta and Brussels-based EU funding and improve the access to finance through EU financial engineering instruments." 

BOV's chief officer credit Albery Frendo said the bank had sanctioned nearly half the financing package in a 12-month period, putting Malta as one of the most successful countries to manage similar instruments.

"The actual results confirm the high commitment that Bank of Valletta has towards Maltese SMEs. SMEs are clearly the backbone of our economy contributing to more than 60% of our Gross Domestic Product.

"With the limited access to capital markets for start-ups, micro and small enterprises, the BOV Jeremie package is improving the access to finance that promotes growth and innovation among our SMEs vis-à-vis their European counterparts. Loans sanctioned under the BOV Jeremie Finance Package carry advantageous interest rates and lower collateral requirements than those normally requested by the Bank," Frendo said.