845 SMEs to get over €60 million in EU funds

A new SME initiative was launched by parliamentary secretary for EU funds Ian Borg with the financial instrument expected to reach at least €60 million.

Malta is allocating the amount of €15 million from its EU Structural funding. Borg said that the number of SMEs to benefit from these funds are set to reach 845 small and medium enterprises.

Addressing a business breakfast attended to by representatives of the European Investment Bank, Borg said that a public call for the selection of the financial intermediaries (FI) will be launched in the coming weeks.

Once the selection process is completed, SMEs will be able to start reaping the benefits of this instrument. 

Borg emphasised that EU Funds for SMEs aims to harmonize other actions taken at national level in support of SMEs by using structural funds (ERDF) together with other EU resources. 

In a reaction, the GRTU called for the full cooperation of banks to offer real benefits and advantages through the SME Initiative.

The JEREMIE scheme, GRTU said, was successful mainly due to the additional advantages it offered, primarily more advantageous interest rates and collateral requirements.

“These advantages should be even more pronounced this time round as they should reflect the ever increasing efforts of the European Central Bank with rock bottom interest rates and other advantageous conditions that prioritise lending, for increased investment and job creation,” the GRTU said.

It also pointed that the new SME Initiative will be offered by a number of banks, or at least those that choose to go for it. GRTU had highlighted the fact that JEREMIE was offered by only by one bank as a limitation, not because the bank acting as a financial intermediary did not deliver, but because SMEs should be free to do business with the bank of their choice.

“This is also very healthy and GRTU looks forward to seeing most local banks not only sign up, to offer this renewed facility to their clients, but also competing between themselves by offering the most advantageous conditions.”