Bank of Valletta announced that it is launching the BOV 4 SMEs Financing. This limited offer is designed to support local SMEs in their capital investment projects requirements by offering lending at advantageous rates of interest. Such incentive has been possible followingBOV's success in tapping funding from the European Central Bank Targeted Longer-Term Refinancing Operations (TLTRO).
The launching of this product follows the successful timely and full allocation of the BOV JEREMIE Financing package which has been described at EU level as "best practice" when compared to the JEREMIE implementation in other EU countries.This productalso complements the BOV Start Plus Package earmarked for start-ups hence providing a comprehensive suite of products targeting the SME business segment.
Speaking about the BOV 4 SMEs Financing product, Albert Frendo Chief Officer Credit at Bank of Valletta explained that, "It is widely acknowledged that SMEs are pivotal in ensuring economic growth and job creation. This is typically triggered by SMEs embarking on feasible and sustainable capital investmentprojects that generate economic value added and adequate returns. Over the past years, Bank of Valletta has positioned itself as the financial services provider of choice for SMEs. This product will further reaffirm the Bank's commitment of assisting the local economy by providing credit responsibly whilst seeking the appropriate financing solutions that assist this segment in growing its potential."
MrFrendofurther explained that financing under the BOV 4 SMEs is intended primarily to assist SMEs implement their capital projects requirements through a very attractive hybrid pricing mechanism which incorporates a fixed rate of four per cent for the initial four years and a highly competitive interest rate thereafter.This product can be used to finance investments in both tangible and intangible assets and related initial working capital requirements.The Bank will encourage investment in innovation, technological developments, renewables and other regeneration initiatives earmarked to ensure competiveness and sustainable growth.
SMEs can apply for financing under this product for amounts up to€700,000. Loan term depends on the type of asset being financed and can go up to 10 years.
Customers may visit www.bov.com for further details about this product or visit any branch or Business Centre within the BOV retail network. Queries may be addressed to Customer Service Centre on 2131 2020.