Local businesses will receive more financial assistance to help with liquidity constraints imposed by the COVID-19 pandemic.

Malta’s government will be subsidizing interest rates on working capital loans for two years and up to a maximum of 2.5%.

“With this measure, the government is enhancing access to bank financing for the working capital requirements of businesses in Malta facing a sudden acute liquidity shortage as a result of the COVID-19 outbreak,” said Finance Minister Edward Scicluna at a press conference. 

“This scheme will be injecting €40 million in the businesses’ pockets while assisting families to ease the financial burden. I would like to thank Bank of Valletta, HSBC, APS Bank, MeDirect, BNF, Lombard Bank, Izola Bank and FCM Bank for reaching this agreement with the Government to assist local businesses during extraordinary times,” concluded Parliamentary Secretary Clayton Bartolo. 

In addition to subsidized interest rates, local businesses are also receiving aid in the form of a Tax Deferral Scheme and the possibility of a six-month moratorium on bank loans and interest rates.

These measures are expected to ease the negative impact of COVID-19 on businesses and the self-employed.

Earlier this week, the IMF projected that Malta’s economy will shrink by 2.8% this year before rebounding into strong 7% growth in 2021 as a result of the financial packages provided.