The Malta Bankers' Association (MBA) has welcomed the announcement that the government will be covering the first 2.5% of interest charged on capital working loans but said more details are required.

On Thursday, Finance Minister Edward Scicluna said the government will subside up to 2.5% of the interest rate of loans taken out by businesses.  In each case, the client must pay a minimum of 0.1% of the said interest rate. The scheme aims to help businesses through the current Coronavirus-induced economic situation.

"While welcoming the announcement and reiterating its readiness, and that of its members, to collaborate with the authorities in the implementation of these measures, the MBA wishes to highlight that the specific details, terms and modality of the announced scheme have not yet been communicated to its members," the association said.

"In the meantime, banks are receiving numerous queries about how the scheme will operate. Once such information is communicated in due course, the MBA and its members will provide further updates as necessary."