New €50 million financing package for SMEs

€50 million are being made available to small businesses that are planning new capital investment projects.

Launched by Bank of Valletta and the Malta Development Bank, BOV SME Invest allows small and medium enterprises easier access to finance through reduced collateral requirements and a 3.5 per cent interest rate.

Interested businesses can seek financing ranging between €200,000 and €750,000 for a maximum maturity period of 10 years.

The €50 million financing package is being made available through a €10 million guarantee provided by the MDB. This is what allowed BOV to lower the collateral obligations, according to the bank’s Chief Credit Business Development Officer Albert Frendo.

Mr Frendo said that through risk-sharing programmes, such as the Jeremie and Jamie schemes, the bank has been better able to support SMEs since 2011.

He noted that micro customers made up more than two-thirds of its latest such scheme, while half of these same businesses have been around for five years or less.

Addressing the launch, Finance Minister Edward Scicluna said he was proud that work usually carried out by international banks was being implemented by Malta’s own development...