The Malta Development Bank’s various financing schemes have continued to provide an effective mechanism to mobilise private investment, thereby facilitating access to finance, supporting local businesses in their quest for growth and innovation.
The Bank’s Annual Report 2022, launched in the presence of Minister of Finance Clyde Caruana, shares details of how throughout its first five years of operations, the Bank has assisted more than 700 businesses which employ some 40,000 persons, and more than 400 students, by facilitating €580 million in favourable financing.
Prof Josef Bonnici, MDB Chairman, recalled how during the past year, the Bank swiftly responded to the economic ramifications of the ongoing war without derailing efforts in supporting new investment.
Referring to the two new flaghship schemes launched late last year, the SME Guarantee Scheme and the Guaranteed Co-lending Scheme, Prof Bonnici noted how both schemes are tailored to the specific circumstances of local business and prioritise those investment projects that contribute to a greener and more digitally oriented economy, in line with the key objectives of both the Government and the European Union. In parallel, schemes assisting businesses which were potentially wrong-footed by the geopolitical conflict on Europe’s borders were also launched.
MDB Chief Executive Officer Paul V Azzopardi highlighted the economic impact of the MDB’s operations, explaining that the Bank currently contributes around 13% of all the banking system’s outstanding loans to Maltese businesses. Mr Azzopardi shared details of how in order to widen its portfolio, the MDB has embarked on the ambitious process of becoming a direct implementing partner of InvestEU, the European programme which supports sustainable investment, innovation and job creation in Europe through more than €372 billion in additional investment over the period 2021-27.
“To achieve this objective, while also strengthening the role of the Bank, we continue to make a significant investment in our governance and financial management structure in order to be able to demonstrate that the Bank is able to provide a high level of protection to EU funds, including on matters related to internal control systems, the accounting system, and other aspects including anti-money laundering, tax avoidance, data protection, credit risk management and risk governance”, Mr Azzopardi explained.
