Malta Development Bank and KfW Group offer SME financing in Malta

The Malta Development Bank (MDB) has signed a EUR 45 million global loan agreement with the KfW Group.

MDB will use the funds to promote SME (Small and Medium-sized Enterprises) finance in Malta with special emphasis on SME investments.

SMEs in Malta will benefit from the favourable financing conditions offered by KfW and MDB.

This facility aims to address the market gap in access to finance for SMEs. MDB will mobilise the funding by direct loan agreements with SMEs in conjunction with domestic banks that will be participating in  a  new  scheme  that  the  MDB plans  to  launch  soon,  comprising  co-financing and a partial guarantee. 

This  loan  agreement  will  contribute  to  deepen  and  extend  the  existing  business relationship between KfW and MDB which started during the bank´s incorporation process.

The global loan with KfW is MDB´s first funding transaction.

KfW was set up in 1948 by the German government and is one of the world's leading promotional banks with assets of almost €500 billion.

Prof. Josef Bonnici, Chairman of Malta Development Bank noted that “SMEs are one of the top priorities of the MDB as they ensure growth, innovation, jobs and the long-term competitiveness of the Maltese economy. This global loan will enable MDB to fulfil its mandate by providing the necessary support to SMEs in Malta to overcome  the persistent difficulties in financing new investment. We are convinced that this bilateral operation provides an excellent basis for further collaboration between KfW and MDB in the future.”