SME funding initiative launched, €60m in cheap funding made available through BOV

Around €60 million in cheap financing for SMEs was made available today through the launch of an EU‐led initiative.

The agreement with Bank of Valletta aims to facilitate access to finance for over 800 SMEs by enabling the bank to offer financing at low interest rates and fewer collateral requirements.

The SME initiative is a joint financial instrument between the European Commission, European Investment Bank and the government.

75 per cent of the loan risk will be taken on by the EU institutions.

Speaking during the launch, Deputy Prime Minister Louis Grech said that banks have become risk‐averse since the 2008 financial crisis, and this initiative will help SMEs in Malta gain access to finance.

Around 850 SMEs are expected to benefit from the funds.

The fund is open to all SMEs, though the average loan is expected to be €70,000 up to a maximum of €500,000.  

The Parliamentary Secretary for EU funds Ian Borg said the initiative is open to other banks. 

from The Malta Independent http://ift.tt/1OM78sS
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