Robert Abela Pledges ‘Easier Banking’ For Maltese Businesses And Self-Employed With Right To Basic Account
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The Labour Party have pledged to make banking easier by way of introducing a right to a basic bank account for businesses as well as those who are self-employed.
Addressing a press conference on Monday, Prime Minister Robert Abela had the following to say:
“This will be an extension of the right we introduced for individuals who have a basic bank account in conformity to the rules imposed by the EU and on financial supervision.”
The proposal addressed the qualms of business owners, of whom have spoken out about the difficulties behind opening a bank account in Malta; a consequence of rigorous due-diligence checks following Malta’s greylisting.
“That business loans take months to be processed is unacceptable,” he said.
The announcement was the first of others made with the intention to ease business life on the island.
With extensive checks angering business owners, the party proposed a centralisation of investigative processes, potentially removing ‘unnecessary’ probing and creating a streamlined approach. As an alternative to promote sustainability, Abela proposed energy audits be subsidised by the government for all SMEs.
Moreover, a financial grant would be provided to companies growing their companies. One which would cover up to 30% – and 40% in Gozo – of any fixed capital investment.
Increased pressure on business owners was brought as a consequence of Malta’s money-laundering campaign, with a 2019 Moneyval report increasing due diligence checks, if not merely placing malta on the FATF graylist.
Abela also announced a profit reinvestment scheme, which would see the government refund all tax paid on profit that is reinvested in their company.
With sustainability at heart, the Prime Minister also pledged to have energy audits subsidised by the Government for all SMEs, with financial incentives to recommendations issued by the audit.
Tax credits will be available for enterprises that fulfill their recommendations. This will be done by widening the eligibility criteria for the SME-tailored facility offered by the Malta Development Bank.
“After the difficult times, business went through, we want to help them as best we can,” Abela maintained.
What do you make of these proposals?