First measure seeks to ensure security of supply of grains – further measures to be introduced in the coming weeks
The Malta Development Bank has launched the MDB Subsidised Loans Scheme following the approval of the European Commission under the Temporary Crisis Framework for State Aid. This support measure is intended to ensure the security of supply of grains, animal feeds and related products of strategic importance by assisting importers and wholesalers through the provision of temporary liquidity support.
In order to ensure food security in the wake of the war in Ukraine, the MDB is committed to assist importers and wholesalers to stock reserves of wheat and animal feeds for a longer period than normal. Such abnormal stock piling at the prevailing higher prices required substantial liquidity at short notice. The MDB was appointed by the Government to take immediate remedial action by providing urgent liquidity support in the form of direct subsidised loans to the major grain importers. The MDB Subsidised Loan Scheme offers a portfolio of up to €30 million loans to grain importers for a term of two years. Loans under this measure also benefit from an interest rate subsidy of up to 2%. The Scheme is available until 31 December 2022.
This scheme is the first of a package of support measures which the MDB will be rolling out over the coming weeks. The war in Ukraine is impacting all economic sectors and, in response. the MDB is devising schemes to facilitate access to liquidity to all undertakings affected by the current crisis.
The upcoming schemes – which will have broader eligibility – are intended to support those businesses facing liquidity issues as a result of the crisis in Ukraine. As in the case of the MDB COVID-19 Guarantee Scheme, the MDB will be offering de-risking instruments to enable the provision of more accessible and affordable working capital loans, thus reducing the impact on the affected economic operators. More information on the upcoming schemes will be provided in due course.