New MSE platform offers SMEs up to €5 million in finance opportunities

A multilateral trading facility aimed at providing SMEs looking to raise between €1 million and €5 million to finance their expansion is to be launched, with opportunities of direct financing by investors  in the market.

Finance Minister Edward Scicluna said the necessary legislation and regulations that will allow this platform to be set up will be enacted by Parliament soon.

The new capital markets platform PROSPECTS was introduced to stakeholders by the Malta Stock Exchange (MSE) yesterday, with Scicluna saying it would offer a much needed support to smaller businesses, and stimulate the financial market to generate millions in economic activity.

“Still, it is a fact that companies are increasingly seeking alternatives to financing through banking, and a listing on the MSE should be one of the main avenues companies actively consider,” Scicluna said.

Scicluna also announced new fiscal incentives for family businesses in the pipeline, that would allow firms to grow without enduring needless break-ups during expansion, as well as a Company Recovery and Resolution Act that will eliminate a fragmented array of legal procedures associated with company liquidation.

“Businesses need a very clear, transparent and efficient framework for recovery resolution, and that this legislation will be giving companies a second chance and offering them protection as should be the case in any modern country. The draft Bill, has been approved by Cabinet and will be presented in Parliament after further consultation,” Scicluna said.

“The financial landscape has shifted, and the time is ripe for SMEs and family-run businesses to come out of their safety cocoon, not only to survive but to thrive. We encourage them to take a step forward towards the stock exchange, and platforms such as PROSPECTS - together with other measures that are being introduced - make this easier than ever before.”