2.5% subsidy on interest rates

Businesses and self-employed workers hit hard by the coronavirus pandemic are being offered a subsidy of up to 2.5 percent on the interest rate charged by banks, should they decide to take a loan to cover expenses. The subsidised interest rate would be applicable for the first two years of the loan.

This subsidy should be taken in the context of other measures announced recently, such as the six-month moratorium issued by the Central Bank of Malta on all loans - covering capital and interest payments – which was being offered to SMEs, self-employed and individuals whose income had dropped as a result of the COVID-19 outbreak. The closing date for this measure is the 30th of June.

The Malta Development Bank is, in the meantime, also operating a bank guarantee scheme aimed at lowering interest rates on loans undertaken to cover COVID-19 related expenses, including employees’ salaries, supplies and rent costs which lack the necessary guarantee.  The government is offering up to 90 percent of the required guarantee.