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Malta Development Bank strengthens support to SMEs with signing of agreements with BOV, HSBC and APS

The Malta Development Bank is proud to announce the signing of strategic agreements with three leading banks to serve as intermediary partners for its two new flagship financing schemes.

Each of these banks brings a wealth of experience in supporting Maltese businesses and shares the MDB’s vision of driving economic growth and sustainability through targeted financing solutions.

By working together, the MDB and its intermediary partners will offer a comprehensive suite of benefits to SMEs, including lower interest rates, reduced collateral requirements and better credit terms.

These partnerships mark a significant milestone in MDB’s commitment to fostering the growth and development of SMEs in Malta. As part of these agreements, the MDB will collaborate closely with the banks to provide tailored financial products and services to businesses. By leveraging the banks' extensive networks and expertise, the MDB aims to facilitate access to funding, promote innovation, and empower SMEs to thrive in today's competitive business landscape.

These two schemes, the SME Guarantee Scheme and the Guaranteed Co-Lending Scheme, which together carry a portfolio of up to €180 million in new loans, seek to encourage entrepreneurs to invest in  projects that contribute to growth in a variety of traditional and innovative economic sectors.

Access to these schemes is now available through these intermediary banks. The SME Guarantee Scheme supports investments of up to €750,000 while the Guaranteed Co-Lending Scheme can address the financing needs of larger projects up to €10 million.In line with national and European-wide priorities, the Schemes also serve as a tool to mobilise private investment through risk mitigation and will support firms in undertaking the climate  and digital transitions required to meet existing challenges and prepare themselves for further growth.

MDB Chairman Prof. Josef Bonnici said: “This agreement is a major breakthrough for business operators and a key milestone for the MDB since it is the first intermediation agreement with the local banking industry, besides the Covid-19 Guarantee Scheme, which sees three major banks on the Maltese islands joining forces with us to offer businesses with simplified and cheaper access to finance, allowing firms to address the current challenges and implement the necessary transformation to keep growing in the years ahead”.

MDB CEO Paul V Azzopardi expressed enthusiasm and confidence in the combined expertise and resources these banks bring to the table. "We are thrilled to join forces with BOV, HSBC and APS to drive the growth and prosperity of SMEs via new investment in traditional sectors of the economy as well as the new sectors of climate improvement, digitalisation, and sustainable economic activity. By leveraging our collective strengths and market presence, we will provide SMEs with the necessary financial support to realize their ambitions and contribute to economic development."

27/06/2023 MDB
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