Financing scheme for businesses hit by COVID-19 launched

BOV and Malta Development Bank loans scheme allows local businesses to apply for loans ranging from €4 to €8 million depending on company's size

BOV and the Malta Development Bank have launched a financing scheme for businesses
BOV and the Malta Development Bank have launched a financing scheme for businesses

Local businesses hit by COVID-19's economic impact will be able to access loans of between €4 million to €8 million under a new financing scheme launched by BOV and the Malta Development Bank (MDB).

The scheme, BOV-MDB COVID Assist (BMCA), is aimed at assisting local businesses facing unprecedented disruptions bought about by the COVID-19 pandemic.

SMEs will be able to apply for a maximum loan amount of €4 million, while large enterprises can apply for up to €8 million, subject to bank’s approval. 

Repayment terms can range between 18 and 72 months, with an inclusive moratorium period of six-months that can be extended to twelve months depending on particular circumstances of the business.

The scheme will enable companies to meet working capital requirements, aiding them with running costs such as employees’ wages and salaries, bills, pending invoices, acquisition of stock, maintenance costs and expenses that are critical for the smooth running of the business, BOV said in a statement on Tuesday.

“Once again, Bank of Valletta will be supporting the local business community by providing much needed liquidity and working capital facilities in these challenging times,” BOV Chief Credit Officer Albert Frendo said.

“Right at the start of this pandemic, we launched a number of initiatives to assist our business customers. Now, through our long-term collaboration with MDB, we shall be offering further credit supportive measures with attractive, all-inclusive interest rates starting from a fixed rate of 2.5% for the first two years, at no additional fees and charges. We are currently discussing with MDB how business customers will be refunded with the two-year interest rebate, recently announced by the government.”  

Frendo said that BOV was determined to ensure that SMEs - the the drivers of Malta's economy - would benefit from a highly attractive proposition during this difficult period. "BOV-MDB COVID Assist will provide the much needed liquidity injection to our local businesses and economy”, Frendo added.

MDB chairman Josef Bonnici highlighted that the government had allocated a €350 milion fund to the MDB to set up a COVID-19 guarantee scheme to guarantee loans granted by commercial banks to businesses facing unprecedented cash flow disruptions.

"Bank of Valletta is the first bank which met MDB’s criteria and is now accredited to assist its customers under the scheme”, Bonnici said, “The BOV-MDB COVID Assist will provide the much-needed breathing space for businesses by ensuring that credit keeps flowing to where it is needed. These funds will be injected directly into businesses of any size or sector which will help the Maltese economy to maintain employment and be in a position to bounce back and resume the pace of economic activity at the earliest opportunity.”

The scheme will be available until 31 December 2020. Businesses seeking to avail themselves of the BOV-MDB COVID Assist are to send an email to [email protected], or if they are BOV customers to their Relationship Manager, Business Centre or Corporate Centre. Further information on how to apply can be found on

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