€6 million allocation for investment by SMEs, start-ups

An agreement signed between the European Investment Bank and Banif will see the allocation of €6 million in financial facilities to support investment by small and medium enterprises in Malta.

Deputy prime minister Louis Grech this morning presided over the signing of the SME initiative operational agreement between Chief Executive for the European Investment Fund Pier Luigi Gilibert and Chief Executive Officer at Banif Bank Joaquim Silva Pinto.

Parliamentary secretary for EU funds Ian Borg was also present.

This is the second agreement with a financial intermediary in Malta concerning the SME Initiative that will absorb Malta’s total allocation under this Initiative. The SME Initiative, through the leveraged effect, will be making available some €60 million of new money in Malta which will benefit around 850 enterprises over the next five years.

“If these funds are absorbed early, the government will take action to top-up its contribution to the SME Initiative,” Grech pledged.

Grech said that the government viewed positively the contribution that the SME Initiative can make to the economy since it complements government’s other initiatives in this area.

The scheme will provide easier, cheaper and faster access to much-needed funds for SMEs.

Borg said that the financial instrument will address the particular needs of Maltese SMEs, most of which are family businesses or employ few people or are self-employed persons.

“They are important since they account for significant employment and make an important contribution to the economy,” Borg said.

“In recent years, banks were cautious in their lending and this may have put some SMEs at a disadvantage. Against such background, the contribution of the SME Initiative becomes more significant.”

Banif Bank (Malta) PLC has selected by the European Investment Fund as a financial intermediary for the SME Initiative in Malta.