The European Investment Fund (EIF) has signed a €30 million agreement with Bank of Valletta following a selection process to support small and medium-sized businesses (SMEs) as the first phase of a joint facility to stimulate the competitiveness of SMEs in Malta, the government said in a statement Friday.
The new funds are expected to contribute to activate investments for €60 million in the real economy, providing over 140 businesses with access to favourable financing conditions tailored to their needs. The partnership was announced in Malta by EIB Vice-president Kyriacos Kakouris, and Bank of Valletta CEO Kenneth Farrugia during a launch event presided by Permanent Secretary Jonathan Vassallo from the Office of the Prime Minister (EU Funds, Equality, Reforms and Social Dialogue) and in the presence of the Head of the Public Service Tony Sultana.
This initiative falls under the umbrella of the InvestEU Member State Compartment in Malta, which is allocating part of its EU budgetary guarantee, amounting to €10.5 million funded by a contribution from Malta's European Regional Development Fund resources ("ERDF"), as well as the national budget, and a €19.5 million contribution by the EIF to enable Bank of Valletta to strengthen the competitiveness of Maltese businesses while fostering economic growth and resilience through this instrument.
Permanent Secretary Jonathan Vassallo remarked that "Today, under the InvestEU programme, we are launching a new phase in our collaboration with EU institutions. The Malta Member State Compartment will continue addressing SME financing challenges, immediately unlocking €60 million in loans to support growth and competitiveness. As we look forward, this partnership will remain vital for ensuring that Maltese SMEs have the financial backing necessary to thrive, innovate, and contribute to both the local and European economies. With continued collaboration, we can ensure that our SMEs remain resilient, competitive, and prepared for the future."
EIB Vice President Kyriacos Kakouris commented that: "Supporting small and medium-sized companies is essential for driving innovation and competitiveness. This partnership with the Maltese government and Bank of Valletta showcases how the EIB Group, through the EIF, can provide tailored financial products that empower entrepreneurs to scale up their operations and create jobs, ensuring Malta's long-term economic growth."
Bank of Valletta CEO, Kenneth Farrugia reiterated the Bank's commitment to keep supporting local SMEs and the wider business community in Malta. "Our role as the leading Bank in Malta also requires us to be partners in business with local SMEs. Thanks to our ongoing collaboration with the European Investment Bank, we are able to offer additional advantageous lending schemes that enhance our vast product suite. With the portfolio that we are securing today, we continue to reaffirm our commitment to the local business community and to being the Bank of Choice in Malta for all small and medium enterprises."