Fenech reports ‘positive meeting’ with MCESD on pre-budget document

Finance Minister Tonio Fenech led a "very positive" meeting of the Malta Council for Economic and Social Developmment that discussed the pre-Budget document.

Fenech said there was hardly any disagreement from stakeholders on the pre-Budget document during the meeting, which invited employers' associations and unions to submit their viewpoints before the finalisation of the Budget document.

"Our economy is continuing to grow despite the low results posted during last year's final quarter and the first quarter of this year," he said, referring to the two negative-growth quarters that put Malta into recession at the beginning of the year. Statistics released by the NSO today confirmed a 0.9% growth that brought Malta out of the recession.

Fenech added that Malta's growth had prospered especially in the IT and financial services sectors. "We will strive to continue to enhance economic growth while also creating new job opportunities."

On government's introduction of incentives for small and medium enterprises (SMEs), the finance minister said that the introduction of the Micro Guarantee scheme was being well received. Enterprises employing up to 20 workers - including start-ups and self-employed - may be granted a guarantee through the Micro Guarantee scheme - to help them secure a loan from commercial banks participating in the scheme.

Administered by Malta Enterprise, the Micro Guarantee scheme is aimed at facilitating access to loans of up to €100,000 for eligible enterprises, which may use the funds to finance projects leading to business enhancement, growth and development.

Meanwhile, following Moody's rating agency predictions that Malta's deficit would narrowly touch the three per cent ceiling, Fenech said that government will strive to continue to remain as close as possible to its 2012 deficit targets, that of 2.3%.