Bank of Valletta and the Malta Development Bank (MDB) have today launched ‘BOV SME Invest’ which provides €50 million funding put towards small and medium enterprises (SMEs).
This finance is provided ‘through reduced collateral requirements and finance costs.’ Enterprises may seek bank financing up to a maximum of €750,000, at attractive interest rates and reduced obligations.
According to BOV’s Bank’s Chief Credit Business Development Officer Albert Frendo, the BOV SME Invest will provide €50 million financing to local SMEs through a €10 million guarantee provided by the Malta Development Bank. This Guarantee allows Bank of Valletta to reduce its interest rates of 2% below market rate.
BOV SME Invest is also understood to ease the burden of seeking finance and complements other EU funded financial instruments such as the BOV JAIME scheme that is being well received by the market, Frendo added.
The new financing package was launched during a press conference presided over by Prime Minister Joseph Muscat, who added that the initiative would create €50 million of new business for the Maltese economy and €90 million of ‘potential total investment.’
‘This is in line with the MDB’s aim of contributing towards sustainable economic development that benefits the Maltese community through economic growth and infrastructure development,’ the Prime Minister concluded.
Also present during the conference were BOV Chairman Taddeo Scerri, together with Josef Bonnici, the Chairman of the Malta Development Bank.